Sentences with phrase «implied volatility rather»
As a matter of convention, the prices of options traded in over-the-counter markets are quoted in terms of the option implied volatility rather than in monetary units.
https://www.rba.gov.au/ Not exact matches
VRP here differs from that in the referenced research in three ways: (1) it is a volatility premium rather than a variance premium based on standard deviation rather than the square of standard deviation; (2) it is implied volatility minus expected realized volatility, rather than the reverse, and so should be mostly positive; and, (3) estimation of expected realized volatility is much simpler.
A low beta does not imply that the portfolio has a low level of volatility; rather, a low beta means that the portfolio's market - related risk is low.