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...
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This note was uploaded on 10/08/2010 for the course MA 503 taught by Professor Majin during the Fall '09 term at USC.
- Fall '09