assume I have implied FX volatility Delta-Term table from broker. I have time noticed as 2M, 3M. what do I have to put into BS formula, is it 2/12 or "count the business days"/"daycount basis"? I am confused with the notion of time.
Its 2months and 3 months, respectively, adjusted for banking holidays that may fall on the sought after day and the local convention of whether you then move to the next or previous business day.