Option traders are only interested in the historical volatility of the underlying asset.

Name: Option traders are only interested in the historical volatility of the underlying asset.
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Question

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Option traders are interested in both historical volatility and implied volatility of the underlying asset. Historical volatility is a measure of past price movements, while implied volatility is the expected future volatility implied by the current market prices of options on the underlying asset.

Option Traders Are Only Interested in the Historical Volatility of the Underlying