EUR/CHF options market springs into life
The five-year EUR/CHF options market is seeing a boom in activity, as holders of Swiss franc-denominated Hungarian mortgages hedge downside risk, say traders.
The price of five-year downside EUR/CHF protection remained at an elevated 14% last week, since experiencing a 1% intraday spike on October 12 thought to be linked to a second-tier German dealer unwinding a client position.
The trade itself sparked speculation among traders that linked it to the unwinding of a franc-denominated Hungarian
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