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

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


Definitions:

Reticular Layer

The deeper layer of the dermis, made up of dense irregular connective tissue that provides skin with strength and elasticity.

Vitreous Humor

The clear, gel-like substance that fills the space between the lens and the retina in the eye.

Posterior Cavity

The posterior cavity, also known as the dorsal body cavity, is a part of the body cavity that encloses the brain and spinal cord, comprising the cranial cavity and vertebral canal.

Anterior Cavity

In human anatomy, a body cavity located at the front (anterior part) of the body; it encompasses spaces such as the thoracic and abdominal cavities.

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