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Steps 3 and 4 are closely related because
Standard Deviation
A measure of the dispersion or variation in a set of values, often used in finance to assess the volatility of an investment.
Call Option
is a financial contract that gives the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.
American Call Option
A financial derivative that gives the buyer the right, but not the obligation, to buy a stock at a certain price within a specified time frame.
Exercise Price
The price at which the holder of an option can buy (call) or sell (put) the underlying security or commodity.
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