For a vanilla based option, i.e., vanilla options, vanilla strategies, vanilla strip options and vanilla strip strategies, and for an Asian based option, i.e., Asian options, Asian strategies, Asian strip options, and Asian strip strategies, its market volatility is displayed in the Results area.
Once you have calculated one of these options you can then edit its market volatility and then recalculate the option’s Greeks and results.
You do this using the buttons in the Results area for this result as seen in See "Changing an Option’s Market Volatility ":
Figure 1: Changing an Option’s Market Volatility
If you click the pencil icon, the market volatility bid/ask fields become editable. You can then enter your own values. Alternatively, use the Up/Down arrow buttons to increase/decrease the values in set increments. The single arrow increases/decreases the bid/ask values in increments of 0.10; the double arrow increases/decreases the bid/ask values in increments of 0.25.
To change an option’s market volatility:
| 1. | In the Single Option page enter the option’s details. |
| 2. | Click Calculate. |
| 3. | In the Results area click the pencil icon next to the Market Vol label or one of the up/down arrows. The Market Vol fields change to editable textboxes. |
| 4. | Manually enter the market volatility spread you want to use or use the up/down arrows to change the values as required. |
| 5. | To recalculate the Greeks and the other values using your own market volatility click Calculate again. |