<t>To Clarify the original questionI was refering to the Flys or Butterflys, in the FX Option Context where they are vega neutral and traded in terms of vol relative to the ATM.Lets say for example, 6mth ATM Straddles agaisnt selling the vega equivalent amount of 6mth 25delta Strangles .What factors...

Interview question :What is the True Value of the Butterflys ?What kind of answer would the person asking this question be looking for ?

You have 2 pieces of string that burn (when torched at one end) for 1 hour each.The strings are unequal in lenght and have irrgular burn rates .How does one time 45 minutes using a box of matches and the 2 strings .

<t>I was recently asked this in an interview.How do you price a Long dated Strikeout FX option ( ie barrier = Strike) .Can someone please explain what the correct response should be.I understand when spot is close to the barrier that the delta can be large (over 100%) and there is huge amoutns of ca...