> If the OAS quotes are the same then the best bid > is the one with the lowest volatility assumption. > if you have 2 bids: > > > Dude i 10 @ 18% > > > Dude ii 10 @ 24% > Can you please tell what does 10 stand for? I think as vol increase option cost increases so assuming same Z spread for both the bids a higher vol will lead to higher option cost and lower OAS which means an expensive security. So Dude II should have higher price. Am I correct?
dinesh i like that one
it’s OAS @ volatility So maile is correct, DudeI has got a good deal to offer.