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OTC (exotic) option

Posted: September 25th, 2006, 6:05 am
by dodobaby
Does anyone know how investment bank run exotic option business?I mean the issue vol is lower and lower(near actual vol level)How does they hedge and earn money?

OTC (exotic) option

Posted: September 30th, 2006, 12:58 pm
by Optron
That appears to be a pretty general question on vol (gamma/vega) trading and how an option book is run - could you please specify what exactly would you want to know. Cheers,Optron

OTC (exotic) option

Posted: October 2nd, 2006, 3:40 am
by dodobaby
First of all, u should sell products through sales.(u need to give sales commission)Then how could u earn money if issue vol spread is lower and lower?isn't it a tough business???