I'm currently reading Iain Clark's book Foreign Exchange Option Pricing and I conventions stuck at one sentence options the beginning of Section 3. FX volatility smiles are characterized by providing volatilities, not as a function of strike, but as a function of delta. A useful way to understand this is that delta measures the probability of finishing in the money[1]. Psychologically, just think of it as probability. It depends on how close your strike is to the forward at expiry. Lets conventions you have an options which is expiring in a week, the forward will be close to the spot. Hence options out of the money strike for such as option will be closer to the at the money for an option expiring in 6 months where the forward conventions pretty far from the spot. By posting your answer, you agree to the privacy policy and terms of service. Sign up or log in to customize your list. Stack Exchange Inbox Reputation and Conventions. Questions Tags Users Badges Unanswered. Quantitative Finance Stack Exchange is a question and answer site for finance professionals and academics. Join them; it only takes a minute: Options how it works: Anybody can ask a question Anybody conventions answer The best answers are voted up and rise to the top. DoubleTrouble 3 Sign up or log in StackExchange. Sign up using Facebook. Sign up using Email and Options. Post as a guest Name. Quantitative Finance Stack Exchange works best with JavaScript enabled. MathOverflow Mathematics Cross Validated stats Theoretical Computer Science Physics Chemistry Biology Computer Science Philosophy more 3. Meta Stack Exchange Stack Apps Area 51 Stack Overflow Talent.
The table below outlines living indigenous languages of the United Kingdom (England, Wales, Scotland and Northern Ireland).
Similarly, actions people take in life influence others and the domino effect continues.
There has been complaints of LED bulbs interfering with electronics and radios.