Unformatted text preview: p . 3) Give an argument to justify the idea of the “implied volatility”. That is, given the market option price C ma , with the same parameters ( t,s,K,r,T ), there exists a unique solution (for σ ) of the following equation: C ( t,s,K,r,σ,T ) = C ma . 1...
View Full Document
- Fall '09
- Math, Implied volatility, option price Cma