Let's assume that we are trying to calculate the implicit volatility of a stock. The stock price is 36. An option that expires in 6 months at a strike price of 30 sells for $6.80. The risk-free rate of interest is 3.5%. Use the Black-Scholes formula to find the standard deviation of the stock

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To calculate the implied volatility of a stock using the BlackScholes formula we need to rearrange t... View the full answer