is definitely the Vega of the vanilla phone; ∂ σ ∂ K displaystyle frac partial sigma partial K
This pays out a person unit of cash In case the location is above the strike at maturity. Its price now could be given by
is typically known as the "skew slope" or perhaps "skew". Skew is usually damaging, so the worth of the binary simply call is larger when having skew under consideration.
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