Currency option traders often speak of buying low volatility (or 'vol') and selling high vol rather than

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Currency option traders often speak of "buying low volatility (or 'vol') and selling high vol" rather than buying or selling the option itself. What does this mean exactly? From this perspective, what is the real underlying asset: volatility or foreign currency?

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Investment Analysis and Portfolio Management

ISBN: 978-0538482387

10th Edition

Authors: Frank K. Reilly, Keith C. Brown

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