Question

# 3) if the black-scholes formula is solved to find the standard deviation consistent with the current market call premium, that standard deviation would be called the . a) variability b) volatility c) implied volatility d) deviance

Answer

c) implied volatility

- Q: What is the Black-Scholes formula used for? A: The Black-Scholes formula is used to price European-style options.
- Q: What is implied volatility? A: Implied volatility is a measure of an option's expected volatility based on current option prices.