Black and Scholes Options Evaluation Message Board

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Strategies & Market Trends : Black and Scholes Options Evaluation

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To: Uri Miller who wrote (6)	12/8/1996 8:35:00 PM
From: John Kinder	of 44

As was mentioned earlier, standard deviation is a mathematical / statistical value. Conceptually, it is related to how closely "bunched" a set of numbers are. For what your after, if a stock's price is (historically) fairly stable, the deviation will be a small number. If a stock jumps up and down in price alot (high "volatility"), it will have a larger deviation number. You might want to visit your local library and check out a statistics book for further info. As far as "cumulative price", I'm not sure what your talking about. Maybe you saw this term when someone was calculating the std. deviation by summing up n days of historical stock quotes, which is somthing you would have to do calculate your number.

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