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Explain the process and the steps to calculate historical and implied volatility. In addition, explain how each variable (S,X,r,T & Sigma) in the BS equation

Explain the process and the steps to calculate historical and implied volatility. In addition, explain how each variable (S,X,r,T & Sigma) in the BS equation affects the option price. How would you use implied volatility to decide if you should buy or not buy an option?

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