Implied volatility
- Japanese
- インプライド・ボラティリティ
- Last reviewed
- September 25, 2026
This is a draft, shown for review before publication.
Implied volatility is the volatility you get by putting an option's market price into a pricing formula (such as the Black-Scholes model) and solving it backward. The higher the volatility, the higher the premium, and because the two correspond one to one, the currency option market quotes prices as implied volatilities.
Related terms
Explained in detail
Pages that use this term
- Probability and Statistics Basics
- Put-Call Parity
- Digital Options
- Swaptions
- Bermudan Swaptions
- FX Options
- Variance Swaps and Volatility Swaps
- Cliquets
- Volatility Products such as VIX Futures
- Convertible Bonds (CB)
- Implied Volatility
- Volatility Smiles and Surfaces
- The Black and Bachelier Models
- The SABR Model
- Local Volatility Models
- The Heston Model
- Copulas for Credit
- Model Calibration
- Delta Hedging
- Managing Gamma and Vega
- Hedging Exotic Products
- Sensitivities: DV01, Vega and Key Rate Sensitivities
- Exposure Measures: CE, PFE, EE/EPE and EAD
- Fair Value Measurement: IFRS 13, ASC 820 and the Fair Value Hierarchy
- The Fundamental Review of the Trading Book (FRTB)