Implied volatility

Using the market price for an option on Google's stock, I use Excel's GOAL SEEK function to estimate implied volatility. Implied volatility is a reverse-engineering exercise: we find the volatility that produces a MODEL VALUE = MARKET PRIE

Channel: Education
Uploaded: November 30, 1999 at 12:00 am
Author: bionicturtledotcom

Length: 07:05
Rating: 4.7894735
Views: 24940

Tags: Quant Finance Excel

Video Comments

alpmedeiros (November 30, 1999 at 12:00 am)

What if excel can't find the volatility? It say it "impossible to find value"

bullzandbearz (November 30, 1999 at 12:00 am)

some people get confused though on the VIX being a "fear gauge" and while traditionally it is a fear indicator it doesn't necessarily have to be that way. Take the market right now...stocks are rising fast and so is volatility. Just thought I'd add this as it wasn't covered in the video.

Airgutter87 (November 30, 1999 at 12:00 am)

@hmrz What class??

hmrz (November 30, 1999 at 12:00 am)

THANK YOU DAVID !! this helped me soo much on my assignment !! doing great

hmrz (November 30, 1999 at 12:00 am)

THANK YOU DAVID !! this helped me soo much on my assignment !! doing great

thingshappens (November 30, 1999 at 12:00 am)

Hi David, Thanks for your time. You are doing a great thing.

jerry1027 (November 30, 1999 at 12:00 am)

Thank you .. I understand this now

euastus (November 30, 1999 at 12:00 am)

thank you so much friend.

upashantha24 (November 30, 1999 at 12:00 am)

Thank you very much....

inmemoryofk (November 30, 1999 at 12:00 am)

amazing, many thanks