Implied volatility: related pages

A statistical measure of the risk of holding a security; the standard deviation of expected returns on a security.

The most widely used method of option valuation. More complex models are sometimes necessary as it uses a number of simplifying assumptions.

A measure of the risk of a portfolio; the loss that is unlikely to be exceeded in a given period of time with a given level of confidence.

The difference between the intrinsic value of an option and its actual value is called the option value.

A relationship between the price of European call and put options on the same underlying, the underlying security, and the risk free rate.

A volatility index measures the expected (through implied volatility) or recent volatility of a market.