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I am quite new to options, so this is certainly quite a basic question.
In a spreadsheet I have for Black-Scholes, along with other things I have to enter values for "Volatility" and "risk-free rate".
What am I supposed to use for those values? Is there some "volatility" indicator that I am supposed to copy from. What would my rate be?
Thanks in advance for any answers.
Can you help answer these questions from other members on NexusFi?
Volatility is for the underlying asset you are trading, so you cant just plug any number.
You have to know the volatility which is measured in %
The "risk-free rate" in each country is different, but I believe in the US it's the three-month U.S. Treasury bill.
Hope this helps.
Matt
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