Question: The implied volatility of an option Is the volatility implied by the underlying stock price over a given historical period b.Is the volatility that

The implied volatility of an option Is the volatility implied by the

The implied volatility of an option Is the volatility implied by the underlying stock price over a given historical period b.Is the volatility that would have to be plugged into a given option pricing mode to obtain the observed me C Can only be calculated using the Black-Scholes model dis equal to the volatility that will actually be realized over the life of the option

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