Historical Volatility Is the Correct Method for the Calculation of the Option

question 70

True/False

Historical volatility is the correct method for the calculation of the option volatility.

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Definitions:

Divisor

A number by which another number, typically the numerator of a fraction, is divided.

Bankruptcy

The legal status for individuals or entities that cannot repay debts owed to creditors, often involving asset liquidation.

Original Investment

The initial amount of money put into an investment or project, before any earnings, interest, or growth.

Common Shareholders

Individuals or entities that own common shares in a company, giving them rights to vote at shareholders' meetings and to receive dividends.