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Managing currency options in financial institutions: Vanna-Volga method

  • Yat-Fai Lam
  • , Kin-Keung Lai

Research output: Scholarly Books, Monographs, Reports and Case StudiesRGC 11 - Research book or monograph (Author)peer-review

Abstract

The book introduces how we can manage currency options with the Vanna-Volga method. It describes the underlying theories and applications of the Vanna-Volga method in managing currency options of a financial institution, conforming to the Basel III regulatory requirements which demand a high consistency between the valuation and market risk calculation methodologies of financial instruments. The book illustrates with technical details to shed understanding on the major applications, including valuation, volatility recovery, dynamic portfolio replication and value-at-risk. Those who study finance, risk management, quantitative finance or similar areas, as well as practitioners who wish to learn how to valuate, hedge and manage the market risk of currency options with more advanced models and techniques will find the book of invaluable use. © 2016 Yat-fai LAM and Kin-keung LAI. All rights reserved.
Original languageEnglish
PublisherTaylor & Francis
Volume7
ISBN (Print)9781317387251, 9781138778054
DOIs
Publication statusPublished - 29 Aug 2015

Bibliographical note

Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 10 - Reduced Inequalities
    SDG 10 Reduced Inequalities

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