The failure of May’s last-ditch effort to get her deal through Parliament leaves the U.K. with the choice between crashing out of the European Union without a deal in two weeks and seeking a long extension of its departure date. The British parliament will vote Monday on various alternatives to May’s agreement. Implied volatility on two-week pound-dollar options, which cover the current April 12 deadline for the U.K.’s exit, have surged to the highest level since the immediate aftermath of the 2016 Brexit referendum amid increased anxiety about a no-deal outcome.
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