Volatility Skew — Occurs when an out of the money option is traded at an implied volatility which is significantly different from that of a corresponding at the money option. The net result of this situation is that the market perceives that the out of the money … International financial encyclopaedia
Volatility smile — In finance, the volatility smile is a long observed pattern in which at the money options tend to have lower implied volatilities than in or out of the money options. The pattern displays different characteristics for different markets and… … Wikipedia
volatility skews — In statistics, the skew is the difference between an actual distribution and a benchmark (usually lognormal) distribution. Volatility skew most commonly refers to the difference in implied volatility between out of the money puts and calls. LIFFE … Financial and business terms
Horizontal Skew — The difference in implied volatility (IV) across options with different expiration dates. Horizontal skew refers to the situation where at a given strike price, IV will either increase or decrease as the expiration month moves forward into the… … Investment dictionary
Stochastic volatility — models are used in the field of quantitative finance to evaluate derivative securities, such as options. The name derives from the models treatment of the underlying security s volatility as a random process, governed by state variables such as… … Wikipedia
Волатильность — (Volatility) Волатильность это финансовый показатель, описывающий изменчивость цен Индикатор волатильности, волатильность пар, торговля волатильностью, покупка волатильности, волатильность валюты Содержание >>>>>>>>>>> … Энциклопедия инвестора
Binary option — In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash or nothing binary option and the asset or nothing binary option. The… … Wikipedia
Skewness risk — denotes that observations are not spread symmetrically around an average value. As a result, the average and the median are different. Skewness risk applies to any quantitative model that relies on a symmetric distribution (such as the normal… … Wikipedia
Mountain Range Options — A family of exotic options based on multiple underlying securities. Mountain range options were first created by French securities firm Société Générale in the late 1990s. These options blend some of the key characteristics of … Investment dictionary
Out of the money — An option contract is out of the money when there is no benefit to be derived from exercising the option immediately. A call option is out of the money when the price of the underlying is below the option s exercise price. A put option is out … International financial encyclopaedia
