Reuters – The cost of hedging against near-term swings in the British pound jumped to four-year highs on Friday [Sept. 12] and investors added to unfavorable bets in the derivatives market, reflecting jitters about the result of the Scottish referendum.
One-week sterling/dollar implied volatility rose to a peak of 15.525 percent, according to Reuters data, its highest since mid-2010. The one-week options will expire on Sept. 19, the day after Scotland’s vote on independence from the United Kingdom, when the results should be announced.
