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Financial Mathematics Notes 10[981]

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Financial     Mathematics Notes 10[981]
Black-Scholes greeks



For all the graphs below I am using the following input parameters:



Currency pair = GBPUSD

Spot = 1.9600

USD interest rate = 5%

GBP interest rate = 5%

Volatility = 10%



Strike = 2.0000

Call on GBP

GBP notional = 50,000,000





TV (theoretical value)







8,000,000





7,000,000





6,000,000





5,000,000

Vanilla Today

Greek









4,000,000 Vanilla 100d

Vanilla 30d

3,000,000 Vanilla 1d





2,000,000





1,000,000





0

1.5680

1.6072

1.6464

1.6856

1.7248

1.7640

1.8032

1.8424

1.8816

1.9208

1.9600

1.9992

2.0384

2.0776

2.1168

2.1560

2.1952

2.2344

2.2736

2.3128









Spot

Greek Greek

Delta









Gamma









2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000









0

0

1.5680 1.5680

1.6072 1.6072

1.6464 1.6464

1.6856 1.6856

1.7248 1.7248

1.7640 1.7640

1.8032 1.8032

1.8424 1.8424

1.8816 1.8816

1.9208 1.9208









Spot

Spot

1.9600 1.9600

1.9992 1.9992

2.0384 2.0384

2.0776 2.0776

2.1168 2.1168

2.1560 2.1560

2.1952 2.1952

2.2344 2.2344

2.2736 2.2736

2.3128 2.3128









Vanilla 7d

Vanilla 1d









Vanilla 30d

Vanilla 90d

Vanilla 30d

Vanilla 90d









Vanilla Today

Vanilla Today

Greek

Greek

Vega









-2,000

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000









0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000









0









DVegaDVol

1.5680 1.5680

1.6072 1.6072

1.6464 1.6464

1.6856 1.6856

1.7248 1.7248

1.7640 1.7640

1.8032 1.8032

1.8424 1.8424

1.8816 1.8816

1.9208 1.9208









Spot

1.9600









Spot

1.9600

1.9992 1.9992

2.0384 2.0384

2.0776 2.0776

2.1168 2.1168

2.1560 2.1560

2.1952 2.1952

2.2344 2.2344

2.2736 2.2736

2.3128 2.3128









Vanilla 7d

Vanilla 7d









Vanilla 30d

Vanilla 90d

Vanilla 30d

Vanilla 90d









Vanilla Today

Vanilla Today


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