Find the IV for this...

Discussion in 'Options' started by thecoder, Nov 14, 2021.

  1. mukoh

    mukoh

    Is that why Goldman derivatives division is now just AWS bots with Fairput algo running?
     
    #31     Nov 16, 2021
  2. newwurldmn

    newwurldmn

    yeah. There is talk the firm is getting out of investment banking to divert all resources to the FairPut
     
    #32     Nov 16, 2021
  3. thecoder

    thecoder

    In my above IV calcs I used Bid/Ask as input basis for the IVfinder algorithm. Of course one instead can also use the theoretical Premium from the option pricing model (ie. Black-Scholes-Merton) and take that as input basis. When using this method then one even can spare the tests whether the input premium violates parity (as is necessary with Bid/Ask)...

    That's cooli, man! :)
     
    #33     Nov 19, 2021
  4. thecoder

    thecoder

    Hmm. I think the above idea is an illogical nonsense as we need to calc IV b/c we don't have it. But of course we can't use the "theoretical premium" as we can't calc it since the volatility, ie. IV, is missing.... :)
     
    #34     Nov 19, 2021