The implied volatility of the returns on the underlying asset that is computed using the Black-Scholes option pricing model is referred to as which one of the following?
A)residual error
B)implied mean return
C)derived case volatility (DCV)
D)forecast rho
E)implied standard deviation (ISD)

Question

Quizplus · Accepted Answer

The implied volatility of the returns on the underlying asset that is computed using the Black-Scholes option pricing model is referred to as the implied standard deviation (ISD).

The Implied Volatility of the Returns on the Underlying Asset