ABSTRACT
Implied Volatility Determine the volatility parameter implied by the discrete (CRR) or continuous (Black-Scholes) options pricing model from market Call and Put prices. Plot an implied volatility surface over varying strike prices and expiry times. Fit a discrete binomial model to an options chain using Rubinstein's implied tree algorithm. Explain Jackwerth's functional parameter relating terminal and intermediate risk neutral probabilities within such implied trees.
