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Explain the meaning of implied volatility IM and explain the meaning of vega, v , for non-dividend paying assets. Then, show the Newton-Raphson iteration for
Explain the meaning of implied volatility IM and explain the meaning of vega, v, for non-dividend paying assets. Then, show the Newton-Raphson iteration for implied volatility of a non-dividend European call option and write down the pseudocode for the process.
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