Write a brief note

You finish your report by plotting the volatility surface for each of (implied volatility as a function of the time to expiration and the strike price, for each of the two calls and the put option. Are there any noticeable patterns or surprises in these surfaces, either on or between days? You are an associate at a Sydney commercial bank. One of the bank’s commercial clients has been looking into FX options and came across reporting conventions for OTC FX options and options strategies that they did not understand.   The client has asked you to write a brief note explaining how implied volatilities can be used to summarize information about option prices. You need to write a clear description of how it is possible to represent options prices and strike prices throu …

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