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Discuss which greek letters you should focus on

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Question: You believe that the Asian currency crisis is going to increase the volatility of earnings for firms involved in exporting, and that this earnings volatility will be translated into large stock price changes for the affected firms. You want to create speculative positions using options to increase your exposure to the expected changes in the riskiness of exporting firms. That is, you want to prosper from changes in the volatility of the firm's stock returns. Discuss which "Greek Letters" you should focus on when developing your options positions.

Reference no: EM132756166

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