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Which of the following best defines implied volatility? Question 13 options: a) An estimate of the price volatility of an option. b) The observed relationship

Which of the following best defines implied volatility?

Question 13 options:

a) An estimate of the price volatility of an option.

b) The observed relationship of past and present option prices.

c) An estimate of the price volatility of the underlying asset based on observed option prices.

d) The observed relationship of past and present price volatility of the underlying asset.

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