by R. Venkata Subramani | Jul 5, 2007 | Options, Tutorials
Volatility forms a very key factor in the pricing of an option. As we discuss later in this chapter this component known as ‘vega’ is a factor that is used in the mathematical computation of arriving at the theoretical value of an option price. Increased...
by R. Venkata Subramani | Jul 5, 2007 | Options, Tutorials
Volatility is a measure of how fast the underlying futures prices are moving. It is a measure of the speed and magnitude at which the underlying stock’s prices change. This is expressed in a percentage. The two basic types of volatility are historical volatility...
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