Sunday, June 19, 2005

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...

1 Comments:

Blogger Weedy said...

I really liked the info on your site about Risk Management - nice work. I've just started my own Risk Management Secrets blog and would really appreciate you stopping by

12:07 PM, October 13, 2005  

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