Date	stock price	IVOL_MID
20/04/2023	29.1
19/04/2023	28.61	107.662
18/04/2023	28.76
17/04/2023	28.67
14/04/2023	28.46
13/04/2023	28.13
12/04/2023	28.11	48.985
11/04/2023	28.25
6/04/2023	27.88
5/04/2023	28.04	37.111
4/04/2023	28.07	30.355
3/04/2023	27.91	37.17
31/03/2023	27.72
30/03/2023	27.67	35.877
29/03/2023	27.04
28/03/2023	27.66	31.906
27/03/2023	27.41	38.353
24/03/2023	27.18
23/03/2023	27.63
22/03/2023	28.05
21/03/2023	28.01	24.661
20/03/2023	27.86	32.009
17/03/2023	28.28
16/03/2023	27.82	25.502
15/03/2023	28.31
14/03/2023	28.1	27.387
13/03/2023	28.54
10/03/2023	29	20.712
9/03/2023	29.89	16.236
8/03/2023	29.45	16.196
7/03/2023	29.71	15.194
6/03/2023	29.48
3/03/2023	29.15	21.236
2/03/2023	28.83	20.107
1/03/2023	29.38	16.484
28/02/2023	30	15.894
27/02/2023	29.99	15.03
24/02/2023	29.85	14.453
23/02/2023	29.76	16.195
22/02/2023	30.06	15.897
21/02/2023	30.1	16.287
20/02/2023	30.3	15.979
17/02/2023	29.85	16.369
16/02/2023	30.51	16.697
15/02/2023	30.31	17.048
14/02/2023	31.61	16.483
13/02/2023	31.38	16.458
10/02/2023	31.68	16.253
9/02/2023	31.95	16.685
8/02/2023	32.06	16.217
7/02/2023	31.73	16.357
6/02/2023	31.88	16.112
3/02/2023	31.9	16.161
2/02/2023	31.5	16.234
1/02/2023	31.73	16.489
31/01/2023	31.79	16.759
30/01/2023	31.83	16.211
27/01/2023	31.79	16.231
25/01/2023	31.48	15.858
24/01/2023	31.34	16.137
23/01/2023	31.51	16.336
20/01/2023	31.6	16.285
19/01/2023	31.71	16.474
18/01/2023	31.67	16.66
17/01/2023	31.67	16.465
16/01/2023	31.65	16.575
13/01/2023	31.3	15.989
12/01/2023	30.8	15.814
11/01/2023	30.06	15.365
10/01/2023	29.93	16.301
9/01/2023	30	16.438
6/01/2023	29.76	15.305
5/01/2023	29.94	16.5
4/01/2023	29.7	15.977
3/01/2023	29.42	17.59
30/12/2022	30.06	16.017
29/12/2022	29.92	16.158
28/12/2022	30.22	16.698
23/12/2022	30.38	16.803
22/12/2022	30.52	16.459
21/12/2022	30.26	16.66
20/12/2022	30.28	17.187
19/12/2022	30.26	17.219
16/12/2022	30.4	17.497
15/12/2022	30.79	17.103
14/12/2022	30.71	17.366
13/12/2022	30.79	17.74
12/12/2022	30.19	17.939
9/12/2022	30.19	18.407
8/12/2022	30.12	18.313
7/12/2022	30.65	18.256
6/12/2022	31.03	17.823
5/12/2022	31.26	17.984
2/12/2022	31.38	18.311
1/12/2022	31.68	17.672
30/11/2022	31.54	17.705
29/11/2022	31.69	17.74
28/11/2022	31.59	17.603
25/11/2022	31.49	17.618
24/11/2022	31.23	17.544
23/11/2022	31.3	17.723
22/11/2022	30.97	17.618
21/11/2022	30.83	17.903
18/11/2022	30.66	17.756
17/11/2022	30.6	18.341
16/11/2022	30.31	18.238
15/11/2022	30.49	18.339
14/11/2022	31.26	18.986
11/11/2022	31.35	18.516
10/11/2022	31	19.544
9/11/2022	31.66	19.671
8/11/2022	31.95	20.168
7/11/2022	31.73	19.904
4/11/2022	32.12	19.7
3/11/2022	32.15	19.842
2/11/2022	32.74	20.111
1/11/2022	32.7	20.615
31/10/2022	32.42	20.817

a) calculate and plot annualized historical volatility with annual implied volatility in a graph (show calculations and workings)
•Referring to the graph above, analyse the relationship between historical volatility and implied volatility

Answer rating: 100% (QA)

Calculating and Plotting Annualized Historical Volatility with Annual Implied Volatility To calculate the annualized historical volatility we need to first calculate the daily historical volatility fo... View the full answer