Re: [amibroker] IV calculation for india scripts

[Rakesh Sahgal]

1. IV is backward calculation. Get the options calculator I told you
about from the CBOE website. Use the AFL I gave you to calculate the HV
. Calculate the option value using the calculator referred to before
using the HV from Ami as an input. Now key in the premia being demanded
in the market. and it will give you the IV.

2. Options for most stocks in India are a fool's game  as they are
illiquid. Half the time you dont know if you need to use the HV for the
underlying or the HV for the SSF(single stock future) to value the
options. The only limited use that doesnt hit your bank account is as a
hedge and that too if you dont have to pay illogical premia for them.
You may think differently as this is a matter of opinion and I have
stated mine.


R

On 10/11/06, rajneesh_dak <[EMAIL PROTECTED]> wrote:
seniors,1.is IV a function of option data or price and calculated throughbackward calculation. or it is calculated through daily data data ofscripts.2. different scripts are having different 
IV.SO Their option pricingincludes this expectation. but illiquid option do not reflect realprice or this expectation. how can i calculate correct price of anoption with the given set of data availble of scripts.
i hope ur answer will unearth hidden mystery of option pricing inindia. since most of them are highly illiquid.thanksrajneeshPlease note that this group is for discussion between users only.
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