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Market Making/●●●●

What greeks does a calendar spread actually isolate?

You put on a long calendar spread: sell the 11-month at-the-money call and buy the 33-month at-the-money call, same strike, on a \100$ stock.

Work out the sign of your net gamma, vega, and theta. Where does this position make its money?

Your answer

This one is open-ended. Work it through, then check your reasoning against the full solution.

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