This measure does not account for that volatility σ from the underlying asset. Contrary to previous inputs, volatility is not directly observable from sector details, but need to as a substitute be computed in some product, principally utilizing ATM implied volatility inside the Black–Scholes design. Dispersion is proportional to volatility, https://in-the-money29271.blogoxo.com/27068214/examine-this-report-on-premium