Implied volatility - The value for volatility embedded in the market price of an option. The market price of the option is used to derive the level of volatility implied in it. This represents the markets best estimate of future volatility, and can be compared with historical volatility to determine whether this view has changed.
The expected volatility in a stocks return derived from its option price, maturity date, exercise price, and riskless rate of return, using an option-pricing model such as Black/Scholes.
The volatility of the underlying instrument implied by the market value option"s price.
Implied volatility : the value for volatility embedded in the market price of an option. the market price of the option is used to derive the level of volatility implied in it. this represents the markets best estimate of future volatility, and can be compared with historical volatility to determine whether this view has changed.
the expected volatility in a stocks return derived from its option price, maturity date, exercise price, and riskless rate of return, using an option-pricing model such as black/scholes.
the volatility of the underlying instrument implied by the market value option"s price.
Implied volatility