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by phoenixOmega
February 15th, 2009, 12:16 pm
Forum: Trading Forum
Topic: Swaption Vol Skew
Replies: 1
Views: 46328

Swaption Vol Skew

<t>I apologize if this is too basic, but I am struggling with the volatility implied by the swaption skew and local volatility...Take for example we're looking at a 5y10y 200 bps OTM payer and the current ATMF is at 2%. Let's say the implied volatility (on a bpvol basis) backed out from someone's bi...