SuperDerivatives Interview Question

why is volatility data important?

Interview Answer

Anonymous

Feb 10, 2011

Volatility changes can have a potential impact - good or bad - on any options traded. Also, determine relative valuation of options pricing and its important in the selection of a certain strategies.Volatility is of interest to options traders because it's a vital factor in determining the market price of options. there are mainly two type of volatility historical and imply volatility.