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quotation

The value of vanilla option may be quoted in various ways, out of which the four most used quotation methods are

d
value in domestic currency (or in pips of the very same),
%d
value in % measured in units of the strike,
f
value in foreign currency (or in pips of the very same),
%f
value in % of foreign currency.
The Black-Scholes formula quotes d. The others can be computed using the following instruction.
\begin{displaymath}
{\bf d}\stackrel{\times\frac{100}{x}}{\longrightarrow}{\bf\%...
...rightarrow}{\bf f}\stackrel{\times xK}{\longrightarrow}{\bf d}
\end{displaymath} (41)




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