the pricing of European-style foreign currency options and for the volatility strike structure implicit in these contracts … is devoloped. The curvature of the volatility strike structure is explained by focusing attention on the expected … aggregate net volume and direction of standing orders executed when the exchange rate reaches certain implicit price barriers …

period to alter either the level or the volatility of the $/DM spot rate is examined. Volatility quotes implicit in foreign …

The VIX, the stock market option-based implied volatility, strongly co-moves with measures of the monetary policy … stance. When decomposing the VIX into two components, a proxy for risk aversion and expected stock market volatility …