implied volatility

listen to the pronunciation of implied volatility
English - Turkish
(Finans) İçsel oynaklık
English - English
(Finans) In financial mathematics, the implied volatility of an option contract is the volatility implied by the market price of the option based on an option pricing model. In other words, it is the volatility that, when used in a particular pricing model, yields a theoretical value for the option equal to the current market price of that option. Non-option financial instruments that have embedded optionality, such as an interest rate cap, can also have an implied volatility. Implied volatility, a forward-looking measure, differs from historical volatility because the latter is calculated from known past returns of a security
implied volatility

    Hyphenation

    im·plied vol·a·ti·li·ty

    Turkish pronunciation

    împlayd välıtîlıti

    Pronunciation

    /əmˈplīd ˌväləˈtələtē/ /ɪmˈplaɪd ˌvɑːləˈtɪlətiː/
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