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Delta Hedging Swaption and Cap/Floor in practice
Hi, can anyone help me on the following? a) Am I right to say that it is the market convention to quote a covered swaption or a covered cap/floor over the broker market unless otherwise agreed by both sides?b) How does trader hedge their swaption in practice? duration weighted through the IRS market?c) How about hedging cap/floor in practice? duration weighted through the IRS market too?Thanks a lot for any help in advance.amkey