Question: 14) What is implied volatility and its importance? How can it be calculated?

14) What is implied volatility and its importance? How can it be calculated?

Step by Step Solution

3.43 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Implied volatility is a measure of the expected future volatility of an underlying assets price It is derived from the prices of options on that asset ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!