Explore BrainMass

Explore BrainMass

    Volatility

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Volatility cannot be directly observed for calculation purposes of the option pricing model. Therefore, it may be determined from:

    historic volatility.
    forward-looking volatility.
    implied volatility.
    any of the above.

    © BrainMass Inc. brainmass.com June 3, 2020, 7:34 pm ad1c9bdddf
    https://brainmass.com/business/finance/volatility-104389

    Solution Preview

    Volatility cannot be directly observed for calculation purposes of the option pricing model. Therefore, it may be determined from:

    historic volatility.
    forward-looking volatility.
    implied volatility.
    any of the above.

    Answer: 'any of the above'

    Volatility for calculation purposes is the volatility ...

    Solution Summary

    Answer to a multiple choice question on Volatility.

    $2.19

    ADVERTISEMENT