So \(0.9762\ \times0.95175=0.9291\)
2. One dollar in the future is worth 0.96103 today. At the USD/CHF current spot rate, USD 0.96103=0.9291 CHF.
So the two discounted amount (0.9291 and 0.9291) are equivalent (allowing for rounding).
Volatility Quotations
There is general agreement about the calculation of option prices for vanilla European FX options. Therefore, it is common to quote volatility levels between traders rather than specific option prices. This is particularly useful when the underlying spot is moving rapidly (an ATM forward FX rate at 10 a.m. may be inappropriate at 11 a.m.). Rather than quote individual option prices, traders talk to each other in terms of implied volatility. This will usually change less rapidly than the other variables.
Due to the importance of the smile (Fig. \ref{873349}) in FX option volatility (to be covered later), it is common for traders to also quote the level of delta associated with an option volatility as a guide to the moneyness of the option strike. The implied volatility for a 50 delta option would therefore be volatility for an ATM option, as ATM delta is always roughly 50%. Implied volatility for a 25 delta call or a 25 delta put would focus on the volatilities for the respective OTM options.