Question
(a) What is implied volatility? How can it be calculated? (b) Suppose that we have the observations on a stock price at the end of
(a) What is implied volatility? How can it be calculated?
(b) Suppose that we have the observations on a stock price at the end of 21 trading days. And there are 252 trading days per year, How can we estimate the volatility per year of a stock price empirically?
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th International Edition
0321552113, 9780321552112
