Equating theoretical option price and the market option price, we can solve for implied indicators. Which is appropriate to be used as a quote for option? a) Implied strike price b) Implied volatility c) Implied risk-free rate d) None of the above

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter5: Financial Options
Section: Chapter Questions
Problem 1Q: Define each of the following terms: Option; call option; put option Exercise value; strike...
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Equating theoretical option price and the market option price, we can solve for implied indicators. Which is appropriate to be used as a quote for option?

a) Implied strike price

b) Implied volatility

c) Implied risk-free rate

d) None of the above

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