Not really. They can take any value. Also, you could take a look at this chapter to appriciate different types of volatility -
Refer section 19.1.
Not really. They can take any value. Also, you could take a look at this chapter to appriciate different types of volatility -
Refer section 19.1.
Thanks for your opinion Karthik . I went through the link however the query still remains. Let me refresh it a bit.
As we near expiry does the Implied Volatility start converging near the Annual Volatility ?
Implied volatility will be different for each option and it depends on particular strike.
Implied volatlity will not converge to annual volatility at expiry.