SuperDerivatives Interview Question: why is volatility data import... |

Interview Question

Regional Sales Manager Interview City of London, England (UK)

why is volatility data important?


Interview Answer

1 Answer


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.

Interview Candidate on 10-Feb-2011

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