This three-part module continues where our module FX Options left off and examines in a more formal way the factor sensitivities of FX options, often known as the Greeks because they are formally denoted with Greek letters by quantitative analysts. We explain in detail what are delta and gamma, and why they matter so much to option users and traders, and we provide detailed illustrations of delta hedging and its economics. We also analyze other principal Greeks, including vega, theta and rho. By the end of this module, you will feel very comfortable with how the price sensitivities of options change as the options move from being OTM, to ATM, to ITM.
target audience:DX1 Traders, risk managers, sales force, financial control and audit
prerequisite required:
– FX Introduction
– FX Options
prerequisite recommended:
– None
Please click below pictures to explore the chapters:
