Implied Volatility

Implied volatility is a term in finance and share market for the value of the price or rate volatility variable that would equate current option price and fair value.

Alternatively, the value of the volatility variable that buyers and sellers appear to accept when the market price of an option is determined. Implied volatility is calculated by using the market price of an option as the fair value in an option model and calculating (by iteration) the volatility level consistent with that option price.

Nearby pages
Imponderables, Impressionism, Impressment, Impropriation, Imputation, In Caena Domini