Exchange Currency

volatility risk

The risk that the holder of an option is exposed to based on the potential for the volatility of the underlying security or the market's perception of that volatility to change.

Related information about volatility risk:
  1. Volatility risk - Wikipedia, the free encyclopedia
    Volatility risk is the risk of a change of price of a portfolio as a result of changes in the volatility of a risk factor. It usually applies to portfolios of derivatives ...
     
  2. CFA Level 1 Study Guide - Fixed Income Investments - Volatility Risk ...
    Investopedia's Free CFA Level 1 Exam Online Study Guide. Learn how volatility risk can impact the price of bonds with embedded options. Shows how callable ...
     
  3. Volatility Definition | Investopedia
    1. A statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or ...
     
  4. Volatility risk - Financial Dictionary - The Free Dictionary
    The risk in the value of options portfolios due to the unpredictable changes in the volatility of the underlying asset. Want to thank TFD for its existence?
     
  5. Market Volatility Risk - Integer Wealth Advisors Group, LLC
    Market volatility risk refers to how much the capital markets, and more specifically , ... You can think of the jaggedness of returns over time as market volatility risk.
     
  6. The price of market volatility risk
    We analyze the volatility risk premium by applying a modified two-pass ... provide strong evidence of a volatility risk premium that is increasing in the level of ...
     
  7. Volatility risk
    Similar financial terms. Volatility A measure of the unceratinty or risk in the future price of an asset. Typically volatility is measured by the standard deviation or ...
     
  8. What is volatility risk? definition and meaning
    Definition of volatility risk: The risk that the holder of an option is exposed to based on the potential for the volatility of the underlying security or the market's ...