b) Estimate implied volatility for each index to four decimal places For these estimates use data in Tables 1 and 3 of SecondCity OptionsCare Datal Oexlox Restrict your attention to the six call and put options expiring on August 18, 2007, that are at the money or closest to at the money Use Excel spreadsheets such ar Black ScholesMerton Binomiall Oaxiom or BlackScholesMertonImpliedVolatility 10exlom Give your implied volatility estimates in Exhibit 6 Recall that the Black Scholes Merton model can be used for the SPX estimate, but not for the OEX estimate Thus, you must use your best judgment in order to estimate implied volatility for OEX Whatever methodology you use, explain it clearly c) Discuss the advantages and disadvantages of historical estimates versus implied estimates Then provide one final volatility estimate for each index and explain your reasoning

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b) Estimate implied volatility for each index to four decimal places  For these estimates use data in Tables 1 and 3 of SecondCity OptionsCare Datal Oexlox  Restrict your attention to the six call and put options expiring on August 18, 2007, that are at the money or closest to at the money  Use Excel spreadsheets such ar Black ScholesMerton Binomiall Oaxiom or BlackScholesMertonImpliedVolatility 10exlom  Give your implied volatility estimates in Exhibit 6  Recall that the Black Scholes Merton model can be used for the SPX estimate, but not for the OEX estimate  Thus, you must use your best judgment in order to estimate implied volatility for OEX  Whatever methodology you use, explain it clearly  c) Discuss the advantages and disadvantages of historical estimates versus implied estimates  Then provide one final volatility estimate for each index and explain your reasoning

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b) Estimate implied volatility for each index to four decimal places. For these estimates use data in

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Fundamental Accounting Principles

b) Estimate implied volatility for each index to four decimal places. For these estimates use data in

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Fundamental Accounting Principles

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