This sentence does not make sense to me can someone make sense of it, tell me if you need more info. This sentence is from Chris Temmby book edit 3 Considering the 18.00 call option, a share price rise from $17.00to $18.00 gives an option price rise of 152%, while a share price rise from $ 18.00 to $19.00 gives an option price rise of 102% this option has 8 weeks to expiry. I think rate=6.0% volatility=21% Q2 Also I am having problems working out the black-scholes option pricing model, I was trying to work out the present and future volatility of an option. I understand that the future volatility is basically worked out on an average of what other people’s volatility of that option is.
Will this formula work? Price at end of time/price you started with= Log 1/30 Or do you have to work out the variance. Q3 I use metastock to chart my stocks it has opionscope on it.The worksheet needs a lot of info to be able to chart the options were can l get the data for this. Thanks in advance ant.
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