Are the implied volatilities the same for all the options? If not, what could be some potential reasons?
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Answer:
No, Implied volatility differs for all options. It is the probabilistic method for estimating the value of options which has an underlying asset like stock. It depends on the volatility which means if the stock price was higher, implied volatility will be higher on the options. Whereas, if the stock price was stable which means the price volatility will also be lower and hence the implied volatility will be in control. Further other factors such as interest rates, exchange rate can also cause an effect on the stock price and hence the implied volatility.
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