Consider a non-liquid option market with a wide bid-ask spreads across all strikes.
A snapshot of the \$50 strike shows:
Bid - Ask Call: 2 - 4.5 Put: 0.5 - 3.5
Assume 0% interest.
Is there a set of rules or a model that could minimize the range of possible IV's by entering the option's bid/ask prices?
because these options have a very wide spread and their last price changes sporadically i cannot achieve one appropriate fair value/IV for each option, and as i have mentioned, it's applies to all strikes and therefore i'm incapable of forming a skew. so my question is if there's a math way to obtain min&max fair value outcomes for each option?