NEWSLETTER 347 DECEMBER 2018

Editorial The Sales-Margin Transparency Farce The current commercial blast between Black Friday and Christmas inspires me to explain the sales margin in a financial product and its transparence overlay-farce. Consumers are often led to think that zero-cost products...

NEWSLETTER 346 NOVEMBER 2018

Editorial Payoff, P&L and Effective Exchange Rate Diagrams Today, we go back to financial products 101 and discuss payoff, P&L and financial exchange rate diagrams. The reason is that I regularly experience confusion and misconception, thus it is time to...

NEWSLETTER 331 EDITORIAL AUGUST 2017

Editorial FX Options and Structured Products, 2nd Edition       Finally, the second edition of FX Options and Structured Products has now been published. It took more than 10 years, but with much removed and added material, it has changed quite a bit. For avoidance of...

NEWSLETTER 330 EDITORIAL JULY 2017

Editorial Calendar arbitrage in the FX volatility surface Today I would like to share an observation with you that my colleagues Alexander and Andreas discovered when analyzing FX volatility market data. When we construct the FX volatility smile based on the usual FX...