What is the implied volatility

Reference no: EM131936626

Question: Assume that the cost of insuring an index fund ATMF (S = PV (K)) is 6%. The contract is for 3 months. What is the implied volatility? Assume a Black-Scholes-Merton world BUT you cannot use a B-S-M software. Show your computation (no credit if no computation).

Reference no: EM131936626

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