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What are vols and building curves? The factors that effect extrinsic values? Volitilty and time?
by scsilver 6y ago
What are vols and building curves? The factors that effect extrinsic values? Volitilty and time?
- caffeine 6y ago"Building a curve" means defining a function of where you think volatility should be as a function of strike and expiration. https://www.investopedia.com/articles/stock-analysis/081916/volatility-surface-explained.asp https://www.investopedia.com/articles/stock-analysis/081916/... It gets substantially more complicated, but that's a layman's explanation of what it actually is.