1. Suppose that you subscribe to a service that gives you estimates of the theoretically correct volatilities...
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1. Suppose that you subscribe to a service that gives you estimates of the theoretically correct volatilities of stocks. You note that the implied volatility of a particular option is substantially higher than the theoretical volatility. What action should you take?
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Related Book For 
An Introduction To Derivatives And Risk Management
ISBN: 9780324321395
7th Edition
Authors: Don M. Chance, Roberts Brooks
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