Skip to main content
Learn

Which Volatility Measure Is Used in the Black-Scholes Model?

The Black-Scholes model uses implied volatility (IV) as a key input.
Greeks.Live22.11.25

Which Volatility Measure Is Used in the Black-Scholes Model?

The Black-Scholes option pricing model uses implied volatility (IV) as an input, or it can be used to derive the IV from the option's market price. While the model requires an estimate of future volatility, in practice, the market price is used to back-solve for the implied volatility.

What Is the Black-Scholes Model’s Primary Use in Valuing Options?
What Is “Implied Volatility” and How Is It Derived from the Black-Scholes Model?
Which Volatility Measure Is Used as an Input in the Black-Scholes Model and Which Is the Output?
Which ‘Greek’ Is Directly Influenced by the Risk-Free Interest Rate Assumption in Black-Scholes?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.