How is the implied volatility of an option determined?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (24 reviews)
Six factors will influence the option price i Current price of the underlying instrument ii Strike price iii Time to expiration iv Shortterm riskfree interest rate over the life of the option v Coupon ...View the full answer
Answered By
ANDREW KIPRUTO
Academic Writing Expert
I have over 7 years of research and application experience. I am trained and licensed to provide expertise in IT information, computer sciences related topics and other units like chemistry, Business, law, biology, biochemistry, and genetics. I'm a network and IT admin with +8 years of experience in all kind of environments.
I can help you in the following areas:
Networking
- Ethernet, Wireless Airmax and 802.11, fiber networks on GPON/GEPON and WDM
- Protocols and IP Services: VLANs, LACP, ACLs, VPNs, OSPF, BGP, RADIUS, PPPoE, DNS, Proxies, SNMP
- Vendors: MikroTik, Ubiquiti, Cisco, Juniper, HP, Dell, DrayTek, SMC, Zyxel, Furukawa Electric, and many more
- Monitoring Systems: PRTG, Zabbix, Whatsup Gold, TheDude, RRDtoo
Always available for new projects! Contact me for any inquiries
4.30+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
What is the implied volatility of an option?
-
What is the implied volatility of a put option maturing in half a year with P=$174.06, S=1600, strike of $1700, log dividend yield of 8% and log risk free rate of 3.2%? Use trial and error and your...
-
Estimate the implied volatility of the August 165 call. Compare your answer with the one you obtained in problem 12. Use trail and error. Stop when your answer is within 0.01 of the true implied...
-
A teacher traces a small circle on the palm of a kindergartener's hand to let him know it is time for free play. What type of disability does this child most likely have? A. Traumatic Brain Injury B....
-
Suppose a Bernoulli trial results in a success with probability p and a failure with probability 1 p. Suppose the Bernoulli trial is repeated indefinitely with each repitition independent of all...
-
Who are the buyers who purchase research information from suppliers?
-
In Exercise 41, an error was made in grading your practical. Instead of getting 90, you scored 100. What is your new weighted mean? Data from Exercises 41 The scores and their percents of the final...
-
After Beam Corporation paid its employees on July 15, 2016, and recorded the corporations share of payroll taxes for the payroll paid that date, the firms general ledger showed a balance of $20,700...
-
What is the significance of the McCabe-Thiele method in the context of distillation design, and how does it compare to other graphical methods like the Fenske-Underwood-Gilliland (FUG) method?
-
Refer to the data of Exercise 11.8. a. Calculate a 95% confidence interval for 1. b. What is the interpretation of H0: 1 = 0 in Exercise 11.8? c. What is the natural research hypothesis Ha for the...
-
Answer the below questions. (a) What factors affect the modified duration of an interest-rate option? (b) Deep-in-the-money option always provides a higher modified duration for an option than a...
-
What are the delta and gamma of an option?
-
Are blog comment fields useful? If so, to whom or how? What is the risk associated with allowing users to comment on blog posts? How should a blogger deal with comments that they don't agree with?
-
The Elmer funds management strategy is: A. active. B. passive. C. blended. Three years ago, the Albright Investment Management Company (Albright) added four new fundsthe Barboa Fund, the Caribou...
-
Describe the content of the advisers checklist related to manager selection. Donna Grimmett is working with a financial adviser to establish her investment goals for $850,000, which she recently...
-
The DoGood Funds approach to the aerospace and defense industry is best described as: A. positive screening. B. negative screening. C. thematic investing. Three years ago, the Albright Investment...
-
Based on what the IC considers important for equity-related strategies, which strategy should Mukilteo most likely avoid? A. Long/short equity B. Equity market neutral C. Dedicated short selling and...
-
Which of the IC members statements regarding hedge fund strategies is incorrect? A. Statement 1 B. Statement 2 C. Statement 3 Snohomish Mukilteo is a portfolio analyst for the Puyallup-Wenatchee...
-
Requiring a user ID and password would be an example of what type of control? a. Detective. b. Corrective. c. Preventative. d. Reactive.
-
Which of the following gives the range of y = 4 - 2 -x ? (A) (- , ) (B) (- , 4) (C) [- 4, ) (D) (- , 4] (E) All reals
-
A company that manufactures food and beverages in the vending industry has purchased some handling equipment that cost $75,000 and will be depreciated using MACRS GDS. The class life of the asset is...
-
Consider five depreciation schedules: They are based on the same initial cost, useful life, and salvage value . Identify each schedule as one of the following Straight-line depreciation ....
-
The depreciation schedule for an asset, with a salvage value of $90 at the end of the recovery period, has been computed by several methods. Identify the depreciation method used for each schedule....
-
If you were to enter the banking industry, you might find yourself approving or not approving loans. The following is a good example of a common event you could encounter. Company X is looking for...
-
You see a two year bond with annual coupon rate of 8% that has these flows. Years ahead Cashflows 0 ?? 0.25 0 0.5 0 0.75 1 1.25 1.5 1.75 2 8 0 0 0 108 You will be asked to calculate its price at...
-
Use synthetic division and the Remainder Theorem to evaluate P(c). P(x) = 6x + 5x +9, c = 11/1 P(1) =
Study smarter with the SolutionInn App