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The one parameter in the Black-Scholes-Merton pricing formulas that cannot be directly observed is the volatility of the stock price. What is volatility and can

The one parameter in the Black-Scholes-Merton pricing formulas that cannot be directly observed is the volatility of the stock price. What is volatility and can this be estimated from the history of stock prices? What is implied volatility and how is it used by traders? What is the VIX Index and how is that used?

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