I am trying to create a premium calculator, but I can’t find these variable.
https://zerodha.com/tools/black-scholes/ by default says IV: 18% and Interest %: 7%. Is that correct?
RBI site says “364-Day Treasury Bill (Primary) Yield” = 3.63%
Which one is correct, and how to calculate IV?
Wal
February 3, 2021, 7:57pm
2
Interest is ever changing one and you should take 91 days interest rate. I think it’s at 2.93. IV can be calculated from historical closing price. Check varsity for example
You can go through this post which explains how to use Black Scholes Calculator in detail:
To learn more about options, check out this module on Varsity. The Framework In this three part series, we introduced the Option Greeks in the first post. In the second post, we discussed the practical Application of Option Greeks with...
Thanks.
It says 3.32%. I will use it.