Thursday, May 31, 2007

Yen Volatility Prices `Too Good to Be True,' May Rise From 11-Year Low

(Bloomberg) -- Japanese yen option volatility may be
poised to rise from an 11-year low, drawing traders to wager on
appreciation of the yen and prospects that volatility won't
remain below historical levels.

Volatility on options granting the right to buy or sell yen
against the dollar in one year is nearly 1 percentage point below
measures of previous, average currency swings. Such a difference
may trigger trading models that hedge funds use to purchase
options.


Read more at Bloomberg Currencies News

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