Risk reversals widen as USD put options boom
PARIS - Risk reversals in major dollar crosses widened last week, after the price of dollar put options spiked as traders rushed to buy them following a rapid decline in the dollar.
"There has been an increasing number of US dollar put buyers," said Lorenzo Ravagli, quantitative strategist at Société Générale Corporate and Investment Bank in Paris. "The market is pricing a higher probability of extreme future depreciation of the dollar."
The increased demand for the put options made them more
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