Implied volatility

[6000deepsead]

as CFA,implied volatility's just the out-puted datum from BSfimulae

to find the fair value of optins,we always check the historical volatility

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[bionicturtledotcom]

@6000deepsead in practice, i think it's more useful to use the BSM to infer volatility. To estimate volatility via historical, then input renders the "fair value" of the option vulnerable to the BSM unrealistic assumptions (e.g., lognormal distribution, constant vol)

[6000deepsead]

@bionicturtledotcom

Thank you very much for taking the trouble.

given(all) S=$42,T=6m.K=$40 and r=10%(y)

pls.culculate the premium of call optiom based on BSM

[alpmedeiros]

What if excel can't find the volatility? It say it "impossible to find value"

[bullzandbearz]

some people get confused though on the VIX being a "fear gauge" and while traditionally it is a fear indicator it doesn't necessarily have to be that way. Take the market right now…stocks are rising fast and so is volatility. Just thought I'd add this as it wasn't covered in the video.

[hmrz]

THANK YOU DAVID !!

this helped me soo much on my assignment !!

doing great

[Airgutter87]

@hmrz What class??

[thingshappens]

Hi David, Thanks for your time. You are doing a great thing.

[jerry1027]

Thank you .. I understand this now

[euastus]

thank you so much friend.

[upashantha24]

Thank you very much....

[inmemoryofk]

amazing, many thanks

[engelberthk]

What is the excel formula for the call price in the pink color cell before the goal seek function? Thanks.

Stephen

[bionicturtledotcom]

Integrity2345 - Yes, I mean them as synonyms: volatility = (annualized) standard deviation