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Volatility

Volatility is what enables you assign a probability to the infinite number of prices an underlying instrument can have at expiration. Volatility measures the degree to which the price of the underlying instrument fluctuates over time.

By default, Aspen Graphics uses the implied volatility of the at-the-money strike to calculate theoretical values. If you want to use a value other than the at-the-money strike, you change the volatility type in the Parameters menu from implied to database, and then assign a volatility to the instrument using the .MODIFY command.