--%>
Assignment Help - homework help

Is volatility constant

Is volatility constant?

E

Expert

Verified

Volatility does not come into view to be constant. By that we mean that actual volatility is certainly not constant, actual volatility being the amount of randomness within a stock’s return. But actual volatility is something you can attempt to measure from a stock price time series, and would exist even though options didn’t exist. Though, it is easy to say along with confidence as actual volatility is not constant, this is altogether much harder to calculate the future behaviour of volatility. Therefore might explain why implied volatility is not constant, and people believe as volatility is not constant.

   Related Questions in Financial Management

  • Q : Explain another way of interpreting

    Explain another way of interpreting put–call parity.

    		•
  • Q : Managerial |Accounting help Janice

    Janice Colangelo heads the Training Centre of the large HR Consulting firm EMT Consulting. The firm has three major departments: Recruitment, Training and Career Services. The Training Centre provides management training for employees of various businesses. Recruitment provides recruitment service

    		•
  • Q : EBIT Boeing Company is expecting to

    Boeing Company is expecting to have EBIT next year of $10 million, with a standard deviation of $5 million. Boeing has $40 million in bonds with coupon of 8%, selling at par, which are being retired at the rate of $3 million annually. Boeing also has 200,000 shares of preferred stock, which pays ann

    		•
  • Q : Derivative Securities Assignment Help

    Question 1  Four European vanilla Call options Ci ( ⋅) on an underlier with no interim cash flows, have identicalmaturity T . Their strike prices K i are such that K1 < K 2 < K 3 < K 4 and all strikes are equallyspaced. Interest rates are equ

    		•
  • Q : Describe Foreign Exchange or FX Foreign

    Foreign Exchange (FX): It is the exchange of one currency for other or the transformation of one currency into another currency. Foreign exchange too refers to the global market where currencies are traded virtually all around-the-clock. The word fore

    		•
  • Q : Example of real probabilities to price

    Illustrates an example of real probabilities to price derivatives?

    		•
  • Q : Describe implications of interest rate

    Normal 0 false false

  • Q : Determine value when measure

    If we can’t measure calibration parameter how can we choose on its value?

    		•
  • Q : Tabulate advantages of the flexible

    Tabulate the advantages of the flexible exchange rate regime. The advantages of the flexible exchange rate system comprise: (I) automatic attainment of balance of payments equilibrium and (ii) maintenance of national policy autonomy.

    		•
  • Q : How can you utilize the traded prices

    How can you utilize the traded prices?

    		•