What Is an Option's 'Implied Volatility

question 131

Essay

What is an option's 'implied volatility'?

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Definitions:

Real Number Line

A line that graphically represents all real numbers in a continuous sequence, with points corresponding to numbers.

Real Number Line

A line that graphically represents the set of all real numbers, where each point on the line corresponds to a unique real number.

Even Integers

Whole numbers that are exactly divisible by 2, with no remainder.

Real Number Line

A line that graphically represents all real numbers, including integers, fractions, and irrational numbers.