implied volatility

Definition of "implied volatility"
  1. The expected fluctuation of a financial instrument's price, inferred from the price of its options
How to use "implied volatility" in a sentence
  1. The implied volatility of the stock affected the investor's decisions.
  2. The options pricing model suggested a high implied volatility for the security.
  3. The futures contract had a low implied volatility, suggesting it was less risky.

Provide Feedback
Browse Our Legal Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z