How are implied volatilities used to quote options prices

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Reference no: EM13926171

Answer the following questions as they relate to implied volatilities.

a. Can implied volatilities be expected to vary for options on the same stock with the same exercise prices but different expirations?

b. Can implied volatilities be expected to vary for options on the same stock with the same expiration but different exercise prices?

c. Why and how are implied volatilities used to quote options prices?

Reference no: EM13926171

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