Question: Question 11 (1 point) How is implied volatility defined? volatility consistent with current option price O annualized standard deviation of historical returns it measures how

Question 11 (1 point) How is implied volatility defined? volatility consistent

Question 11 (1 point) How is implied volatility defined? volatility consistent with current option price O annualized standard deviation of historical returns it measures how much option is mispriced best forecast of future volatility Question 12 (1 point) Which implied volatility pattern is most consistent with the BS model? OIVOTM) = IV(ATM) = IV(ITM) OIVOTM) > IV(ATM) IV(ATM) >= IV(ITM) OIVOTM)

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