Pricing & Greeks
Implied Volatility Calculator
Solve the volatility consistent with a manually entered European-model option price.
About this calculator
How to use this tool
The solver searches 0–500% annualized volatility by bisection. It rejects prices outside European no-arbitrage bounds and does not return a spurious estimate for expired options.
Use a representative bid/ask midpoint only if the quote is meaningful. An American put or dividend-sensitive call may fail European bounds even when its market quote is valid; that is a model mismatch, not proof of mispricing.
Worked example
Entering the $10.4506 call from the pricing example with one year remaining recovers approximately 20% IV.
Related tools
Model references and conventions
365 calendar days per year. Continuous rates for theoretical pricing. All examples are illustrative.
