Thursday, August 2, 2007

NITIE develops volatility index

Local index to track volatility - M Venkateshwarlu

The National Institute of Industrial Engineering (NITIE) has come out with an index for measuring implied volatility in the Indian stock market. The model calculates the market's implied volatility based on the Nifty index options. Although this IVIX (implied volatility index), as we shall refer it henceforth, is based on the method developed by Chicago Board Options Exchange, though some changes have been incorporated to account for the specific Indian market conditions.

The author is associate professor of finance, NITIE, Mumbai

Read full article:
http://economictimes.indiatimes.com/News/News_By_Industry/Auto/Two-wheelers/Local_index_to_track_volatility/articleshow/2251738.cms

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