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a) Define and explain the concept of implied volatility. Are there other ways to calculate volatility. To define. b) Does this approach make it possible
a) Define and explain the concept of implied volatility. Are there other ways to calculate volatility. To define. b) Does this approach make it possible to ** volatilize ** the valuation of put options? Show how. c) In your opinion, is the *** (smile) *** problem also present in the case of Swaptions?
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