Implied Volatility Index
Implied Volatility Index . Kyu Won Choi March 2, 2011 Econ 201FS. Implied Volatility Index. Implied Volatility Index With observed option prices, market’s estimate of the volatility is found Black-Scholes-Merton pricing formula C t observed = C t BSM (p(t), K, T-t, r, t )
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