Daglish, Toby; Hull, John; Suo, Wulin - In: Quantitative Finance 7 (2007) 5, pp. 507-524
Implied volatilities are frequently used to quote the prices of options. The implied volatility of a European option on a particular asset as a function of strike price and time to maturity is known as the asset's volatility surface. Traders monitor movements in volatility surfaces closely. In...