There is a question (blue box) on pg 368 of reading 18 in currency management. Asks how to lower the hedge cost. They are currently using a long 25 delta risk reversal hedge. As I understand this the that means they are buying a call and selling a put. The answer is that they move to a 10 delta risk reversal. This doesn’t make sense as BOTH options would be less expensive. Both the premium paid on the call and the premium received on the put. I can’t see how it would be less expensive. Can someone help me understand how I’m misreading this?
Thanks!