Sterling Is Like a Call Option on Brexit Resolution, Citi's Rahbari Says

The transcript discusses the binary nature of market outlooks, particularly in relation to the possibility of an Odile. It highlights the changing circumstances and the small likelihood of a no-deal scenario in late October. The analysis focuses on Sterling, noting its asymmetric risk and likening it to a call option for Brexit resolution. The base case suggests an extension followed by an election, with uncertain outcomes but potential upside if a resolution is reached.

What is the current status of the market's view on a no-deal Brexit?

• It is no longer binary.

• It remains somewhat binary.

• It is entirely unpredictable.

• It is completely certain.

What is the probability of a no-deal Brexit occurring in late October?

• Non-existent

• Quite small

• Moderate

• Very high

How does the market view Sterling in the context of Brexit?

• As a call option for resolution

• As a risky investment

• As a declining asset

• As a stable currency

What is the base case scenario discussed in the video?

• Immediate resolution

• An extension followed by an election

• A new referendum

• A no-deal Brexit

What potential outcome does the market see for Sterling?

• Downside risk

• Upside potential

• No change

• Complete collapse