How you would calculate volatility for option

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Current price of a three-month European call on a non-dividend paying stock is $13.50. Current stock price is $125.94, Strike price is $125, and risk free rate is 8% per year. Assume that historical return data on this stock is not available. Describe briefly in words (without using numbers) how you would calculate volatility for this option? What is this volatility called?

Reference no: EM131918845

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