What I mean is that if the price is determined by the market makers' constraints then the market is quote driven by definition (from Investopedia:...
Thank you for the reply. If everyone sees the same order book why are certain strikes RFQ (Request for Quote)? Maybe that's true only for the...
In my understanding: bonds, currencies, and commodities (cash, not derivatives) are traded in a quote driven market with a market maker who will...
In the link attached https://www.desmos.com/calculator/dzppcqv2tk?lang=it I made an animated function with the time value graph, it is clickable...
From a user of another forum who made the actual calculation. [ATTACH]
Yes. That's my point. In theory the extrinsic value graph should be a lognormal. That's also the reason why ATM delta isn't 0,5, and other...
P.s. I switched ITM-OTM positions
Usually extrinsic value is represented as the image below, a bell shape curve [ATTACH] My simple question is: Shouldn't the actual...
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