Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What does implied volatility represent in options pricing? Select one: a . The volatility used in the Black - Scholes model to make the model
What does implied volatility represent in options pricing?
Select one:
a The volatility used in the BlackScholes model to make the model price match the market price
b The market's forecast of future volatility
c The historical volatility of the underlying asset
d The actual volatility that will occur in the future
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started