I will have an interview for a junior position as interest rates volatility trader. I would like ask you some questions about greeks of caps floors and swaptions.
Are Caps vega positive? Are floors and swaptions too?
A spread volatilty trading usiing caps/floors differs from a trade using swaptions from the rate on which I am referring too right?
For instance: If I have a view on volatility term structure of eg: Libor I should use a combination of cap/floor ( like long cap on 30yrs rates and short caps on 10yrs if i think that volatility of 30yrs rates should increase realtive to 10yrs). Instead if I have a view on volatility term structure of Swap rates I should use swaptions right?
Thank you in advance.