Let St = Fx and St(Inverse) = 1/Fx. Do both of these have same volatility and if so how would you prove it?

  • $\begingroup$ Since volatility measures the change in Log[Fx], and Log[1/Fx] = -Log[Fx], this appears to be apparent. $\endgroup$ – user59 Nov 22 '14 at 19:44
  • $\begingroup$ Similar question and answer (Itô formula) here: quant.stackexchange.com/questions/10993/fx-rate-dynamics $\endgroup$ – pfm Nov 23 '14 at 16:57

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