- Joined
- 2/9/15
- Messages
- 15
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- 13
Hey there,
I am new in FX markets and I have a few questions regarding the volatility quotation for BF.
The first thing is, why does a butterfly measure the convexity of the smile?
Secon how can I get to the formula for the butterfly volatility?: (VolCall+VolPut)/2 -VolATM
kind regards
boulala
I am new in FX markets and I have a few questions regarding the volatility quotation for BF.
The first thing is, why does a butterfly measure the convexity of the smile?
Secon how can I get to the formula for the butterfly volatility?: (VolCall+VolPut)/2 -VolATM
kind regards
boulala