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Calculate historical volatility | Free template

Calculate historical volatility is a free template to calculate the historical volatility of a stock. You need to have data on volatility to calculate an option value.

Volatility is an estimate of how much a stock turns or moves away from the mean average in a given period. Volatility shows how much risk a certain share has. The greater the fluctuations in the stock price the higher the risk to buy shares in the company.

When you buy call options or put options, it is good if the shares have high volatility, it increases the chance that the stock price should go above or below the exercise price before the date of exercise. A high volatility of a share implies a high time value of an option on the shares and therefore a high price or a high premium for this option.

Sometimes implied volatility is mentioned in association with stock options. With implied volatility means the volatility that is given by the option value on the market today. It is the volatility that is inherent in the option price and the volatility that is calculated when all the other values in the option formula are known and used.

You can use this template to calculate the historical volatility of a stock and thus be able to calculate the theoretical price of an option for this stock.
Updated: 01/01/2015 | Created by

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