Concepts related to Proof of Sylow Subgroup Properties

Implied volatility

In financial mathematics, the implied volatility (IV) of an option contract is that value of the volatility of the underlying instrument which, when input in an option pricing model (such as Black–Scholes), will return a theoretical value equal to the current market price of said option. A non-option financial instrument that has embedded optionality, such as an interest rate cap, can also have an implied volatility. Implied volatility, a forward-looking and subjective measure, differs from historical volatility because the latter is calculated from known past returns of a security.

Existence

Existence is the ability of an entity to interact with reality. In philosophy, it refers to the ontological property of being. The term existence comes from Old French existence, from Medieval Latin existentia/exsistentia, from Latin existere, to come forth, be manifest, ex + sistere, to stand. Materialism holds that the only things that exist are matter and energy, that all things are composed of material, that all actions require energy, and that all phenomena (including consciousness) are the result of the interaction of matter.

Volatility smile

Volatility smiles are implied volatility patterns that arise in pricing financial options. It is a parameter (implied volatility) that is needed to be modified for the Black–Scholes formula to fit market prices. In particular for a given expiration, options whose strike price differs substantially from the underlying asset's price command higher prices (and thus implied volatilities) than what is suggested by standard option pricing models. These options are said to be either deep in-the-money or out-of-the-money.