Volatility

Volatility is an important concept to understand in modern finance. Many risk management decisons, and pricing of structured products depend on the volatility of the underlying. In a sense, volatility is a measure of the speed of the markets. In engineering, it is just known as standard deviation!!

I have just started reading a good book on Option Volatility and Pricing by Sheldon Natenberg. Interesting and non-mathematical introduction to derivatives and Volatility spreads!! Very interesting...