When calculating the implied volatility from an option price we use the bisection method and know initially that the volatility is somewhere between 1% and 100%. How many iterations do we need in order to determine the implied volatility with accuracy of 0.1%?
A. 10
B. 100
C. 25
D. 5
When calculating the implied volatility from an option price we use the bisection method and know initially that the vol
-
answerhappygod
- Site Admin
- Posts: 899604
- Joined: Mon Aug 02, 2021 8:13 am
When calculating the implied volatility from an option price we use the bisection method and know initially that the vol
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!