Implied volatility
id:
implied-volatility-176-9482362
title:
Implied volatility
text:
In financial mathematics, the implied volatility (IV) of an option contract is that value of the volatility of the underlying instrument which, when input in an option pricing model, will return a theoretical value equal to the price of the option. A non-option financial instrument that has embedded optionality, such as an interest rate cap, can also have an implied volatility. Implied volatility, a forward-looking and subjective measure, differs from historical volatility because the latter is
brand slug:
wiki
category slug:
encyclopedia
description:
Financial mathematical measure
original url:
https://en.wikipedia.org/wiki/Implied_volatility
date created:
2003-06-26T21:47:07Z
date modified:
2024-09-03T19:21:50Z
main entity:
{"identifier":"Q1660345","url":"https://www.wikidata.org/entity/Q1660345"}
image:
fields total:
13
integrity:
15