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2. How implied volatility works with options trading

   www.aol.com/finance/implied-volatility-works...

   Many options calculators will simply provide the implied volatility for you when you input the stock’s ticker symbol. Factors influencing implied volatility Implied volatility can be influenced ...

3. Margrabe's formula - Wikipedia

   en.wikipedia.org/wiki/Margrabe's_formula

   The payoff of the option, repriced under this change of numeraire, is max(0, S 1 (T)/S 2 (T) - 1). So the original option has become a call option on the first asset (with its numeraire pricing) with a strike of 1 unit of the riskless asset. Note the dividend rate q 1 of the first asset remains the same even with change of pricing.

4. Monte Carlo methods for option pricing - Wikipedia

   en.wikipedia.org/wiki/Monte_Carlo_methods_for...

   The technique applied then, is (1) to generate a large number of possible, but random, price paths for the underlying (or underlyings) via simulation, and (2) to then calculate the associated exercise value (i.e. "payoff") of the option for each path. (3) These payoffs are then averaged and (4) discounted to today.

5. Implied volatility - Wikipedia

   en.wikipedia.org/wiki/Implied_volatility

   A short time later, the option is trading at $2.10 with the underlying at $43.34, yielding an implied volatility of 17.2%. Even though the option's price is higher at the second measurement, it is still considered cheaper based on volatility. The reason is that the underlying needed to hedge the call option can be sold for a higher price.

6. Free options trading – These brokers offer it - AOL

   www.aol.com/finance/free-options-trading-brokers...

   Major online brokers don’t charge for stock and ETF trades, and many offer thousands of no-transaction-fee mutual funds, too. But options still routinely cost about $0.65 per contract, though ...

7. Trinomial tree - Wikipedia

   en.wikipedia.org/wiki/Trinomial_Tree

   The trinomial tree is a lattice-based computational model used in financial mathematics to price options. It was developed by Phelim Boyle in 1986. It is an extension of the binomial options pricing model, and is conceptually similar. It can also be shown that the approach is equivalent to the explicit finite difference method for option ...