FRM: Implied volatility

[@bionicturtle]

@6000deepsead in practice, i think it's more useful to use the BSM to infer volatility. To estimate volatility via historical, then input renders the "fair value" of the option vulnerable to the BSM unrealistic assumptions (e.g., lognormal distribution, constant vol)

[@bionicturtle]

Integrity2345 - Yes, I mean them as synonyms: volatility = (annualized) standard deviation

[@brp7102]

Thank boss ,this is 10 year of your video ,oh my god....thanks

[@engelberthk]

What is the excel formula for the call price in the pink color cell before the goal seek function? Thanks. Stephen

[@thingshappens]

Hi David, Thanks for your time. You are doing a great thing.

[@TheMihirjoshi]

how did you get call option value. could you please tell that?

[@lakeguy65616]

that is the latest price in the publicly traded options market... where an actual seller sold to an actual buyer at that price.

[@emanuelfollybebe996]

What operation are you performing to get that number?

[@lepham90]

Is there any way to calculate the implied volatility for large sample size?

[@yalebulldog05]

to calculate american commodities options, do you think BSM is optimal? or should one try to construct cox-ross-rubinstein or binomial trees within excel? bit of a conundrum i'm going through here as i'm worried about choosing a crappy model with bad assumptions.

[@AldoMedeiros]

What if excel can't find the volatility? It say it "impossible to find value"

[@rogeronnet]

please I need all thge steps to take with exel to compute an option price knowing the (strike,expiration date,price on the market, volatility,local interest rate,foreign interest rate) wich function should I use? Thanks

[@darsh29]

Black scholes formula.

[@Airgutter87]

@hmrz What class??

[@babay3031]

Thnx a lot man....u r awesome....

[@evantan6]

How the hell did it get from 33 network days to 0.13 term? How is this conversion done?

[@evantan6]

Divide by 252. Got it.

[@joshuademoraes]

@@evantan6 Why? year has 365 days not 252...

[@JohnnyCoxTunes]

@@joshuademoraes my guess is he dosen't/can't trade 365 days of the year.

[@darsh29]

@@joshuademoraes There are 252 trading days in a year.

[@joshuademoraes]

@@darsh29 hum 🤔🤔

[@stellamariskinya5793]

unless you give the formula for the call option the video renders to waste of time. how can we reverse without the formula

[@darsh29]

Umm you should see videos on black scholes option in excel.

[@batmanjl77]

Thank you .. I understand this now

[@upashantha24]

Thank you very much....

[@johnpalma7265]

Your introduction of the "Goal Seek Function" made the BSM even more confusing for me than it already is but thanks for the video.

[@euastus]

thank you so much friend.

[@pedrotome7541]

Hey there, could you please tell me how did you get that call option price of $18,49? Because in my calculation I'm not getting that, not even close, and I'm using the Black Scholes Formula. Will wiat for your response

[@bionicturtle]

Here is an XLS, it still looks correct to me www.dropbox.com/s/3mr929rpxoiy65c/0205-bsm.xlsx?dl=0 First tab has σ=20.0% --> c= $18.49, but second tab is the implied volatility where implied σ = 39.4% --> c = $32.42. Please note the term is only 33/252 days or about 0.13 years

[@a2bt456]

can you tell me formula sir or give me sheet? i have been trying it out for 3 months

[@malvahu7877]

@@bionicturtle Thx a lot!!! Your file is so helpful

[@luliu3378]

great!~!

[@dominicnocera9039]

Thumbs down , only because the formula bar is hidden