n NISM Certifications
VIII NISM Series VIII
Medium

The 'implied volatility' of an option is derived from _______.

Practice question from NISM Series VIII - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Historical data

  2. Market prices of options

    Correct answer

  3. C

    The company's earnings

  4. D

    The dividend yield

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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