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volatility |
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volatility
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Traditionally, most companies have calculated historical volatility values and used these (without much additional analysis) in their estimation of option fair value. Attracted by the low historical volatility of the apartment market, a flood of riskaverse capital has flowed to the sector, driving down cap rates for acquisitions and new development. These options are richly priced, to say the least; one-month historical volatility on JBLU options stands at 37. |
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