PRMIA Exam 8002 Topic 1 Question 46 Discussion

Actual exam question for PRMIA's 8002 exam

Question #: 46
Topic #: 1

When calculating the implied volatility from an option price we use the bisection method and know initially that the volatility is somewhere between 1% and 100%. How many iterations do we need in order to determine the implied volatility with accuracy of 0.1%?

A10

B100

C25

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Suggested Answer: A

by Ryan at Jun 23, 2022, 05:49 AM

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