This evaluate does not account for the volatility σ of your underlying asset. Not like past inputs, volatility is in a roundabout way observable from market facts, but ought to instead be computed in a few product, generally using ATM implied volatility inside the Black–Scholes product. Dispersion is proportional to https://option-strategy38283.dgbloggers.com/27341809/an-unbiased-view-of-strike-price