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Ms. D. Pais, an investor, also contacted you for financial advice. She expects very high volatility for soybeans within the next twelve months, which is
Ms. D. Pais, an investor, also contacted you for financial advice. She expects very high volatility for soybeans within the next twelve months, which is based on her view on the outlook for East Asian economies. Soybeans' last closing price was at 560, and implied volatility was 10% for a twelve-month option. The interest rate was at 1.5% a month. Currently, options on the underlying asset are trading at:
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