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Implied volatility

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Uploaded by on Feb 6, 2008

Using the market price for an option on Google's stock, I use Excel's GOAL SEEK function to estimate implied volatility. Implied volatility is a reverse-engineering exercise: we find the volatility that produces a MODEL VALUE = MARKET PRIE

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Uploader Comments (bionicturtledotcom)

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

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

  • 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 What class??

  • THANK YOU DAVID !!

    this helped me soo much on my assignment !!

    doing great

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

  • Thank you .. I understand this now

  • thank you so much friend.

  • Thank you very much....

  • amazing, many thanks

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