4 votes
Accepted

FX option quotation in interbank market

You are confusing listed options with OTC (over the counter options). Conventional option chains only exist for listed options. Equity and commodity are liquid listed option markets. FX and IRS are ...
AKdemy's user avatar
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3 votes

FX option quotation in interbank market

The fx interbank option works by dealers quoting standard runs of implied volatilities on specific tenors and product types (fly/strangle, risk reversal and at the money) which are currency pair ...
river_rat's user avatar
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3 votes

Whos OIS rate? Is there only one?

Generally, OIS stands for overnight index swap. RFR (risk free rate) is the current acronym ISDA, central banks and regulators use for the indices in IBOR transition. Therefore, OIS can be Fed Funds (...
AKdemy's user avatar
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1 vote

Euro short-term rate (€STR) question

It is an annual rate, with a Actual/360 day count so the interest paid on an overnight loan is -0.56%/360.
dm63's user avatar
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1 vote

ECB - Two Tier System

Consider a world in which 4 banks have 3000 EUR to deposit on a daily basis with the ECB, where all of that is deposited at the going rate of -1% (minimum reserve requirements and the excess deposits) ...
Attack68's user avatar
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1 vote

Why do banks tend to decrease lending rates, when central banks cut rates?

Why do gas stations decrease prices when oil prices drop? Why do Dell/Hp/etc decrease their PC prices as component prices drop? etc etc etc
JoshK's user avatar
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1 vote

Would FFR fall if the Fed set IOER to 0?

I agree with you- if IOER were set to zero, any bank that had excess reserves would prefer to loan them in the Fed funds market at a rate above zero, if that existed. Perhaps a small positive Fed ...
dm63's user avatar
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