Cost of Hedging Lira Hits 8-Month High: Inside Turkey

Options show that traders aren’t ready to prune back bearish bets against the lira even as US President Trump signaled the war with Iran could end soon.

The premium on three-month options to sell the lira versus the dollar, rather than to buy the Turkish currency — known as 25 Delta risk reversal — rose to 14.2% in the latest surge in market volatility across global markets triggered by the war in Iran. That’s the highest level since July.