This measure does not account to the volatility σ of your underlying asset. Unlike prior inputs, volatility is indirectly observable from industry details, but have to as an alternative be computed in certain product, largely using ATM implied volatility inside the Black–Scholes model. Dispersion is proportional to volatility, so standardizing https://out-of-the-money68001.newsbloger.com/27448462/everything-about-strike-price