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Implied volatility |
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Implied volatilityThe volatility of the underlying instrument implied by the market value option's price.Similar MatchesHistorical volatilityHistorical volatilityFluctuations estimated from a historical time series. Volatility riskVolatility riskThe risk in the value of options portfolios due to the unpredictable changes in the volatility of the underlying asset. VolatilityVolatilityA measure of a security's propensity to go up and down in price.A volatile share is one which has a tendency to move violently through a deep share price range. Mathematically, this is expressed as the standard deviation from the average performance.In general, high volatility means high unpredictability, and therefore greater risk. Numerous attempts have been made to incorporate volatility into pricing models, but the problem has always been that past volatility is not necessarily a good guide to future volatility.Generally speaking, the higher the volatility of a share, the higher the price of option/warrants on the share will be. Historical volatilityHistorical volatilityA measure of the price changes of a security over a specific period of time. Defined as the standard deviation of the continuously compounded returns on the security. Sometimes referred to as 'historical volatility'. VolatilityVolatilityThe extent to which an economic variable, such as a price or an exchange rate, moves up and down over time. Further Suggestionshistoric volatilityReward to volatility ratio Asymmetric volatility |
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