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implied volatility for close to expiry ATM options vs VIX
This question was asked the day before Thanksgiving ? Then an option that expires in 3-4 days is Friday ? Or Monday ? It doesn’t much matter, the point is that the market doesn’t expect much action ...
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2
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implied volatility for close to expiry ATM options vs VIX
Bonus: Dividend yield concerns the underlying, not the option. It is a cost of carry no arbitrage logic that is used to price options and as such you need to take dividends into account.
The VIX index ...
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2
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Accepted
If there was a way to back out implied volatility (IV) from a stock, would it be the same as the IV backed out from an option on that same stock?
Yes, IV is indeed possible, at least in theory, to back out of stock prices. This lies, I would say, in the core of the so called structural bond models, which, as far as I know, started out with ...
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