You have to use the Black Scholes option pricing model. You keep plugging in volatility figures till the theoretical price given by the model equals the traded option price. Else you can use the Solver function in Excel to do it.
You have to use the Black Scholes option pricing model. You keep plugging in volatility figures till the theoretical price given by the model equals the traded option price. Else you can use the Solver function in Excel to do it.