Implied Volatility (wrt to an option pricing model, usually Black Scholes model) is the volatility value which when substituted in the model gives the same price as the market price of the option contract. For an european option, this would be a function of the strike and the maturity (and mostly not a constant one). Note that the implied vol is forward looking (unlike historical vol) and sort of gives a normalized price.
Local Volatility, on the other hand, is a modeling concept, which in some sense represents the average of instantaneous volatility, for a given asset level and time. In derivative pricing, we usually represent dynamics of an asset by the following SDE: dS = Mu.S.dt + Sigma.S.dW where Mu is the drift, W is a brownian motion and Sigma is the instantaneous volatility. In gene
Transient: In Java, it is used to specify the variable is not being serialized. Serialization is a process of saving an object’s state in Java. When we want to persist and the object’s state by default, all instance variables in the object are stored. In some cases, if we want to avoid persisting few variables because we don’t have the necessity to transfer across the network. So, declare those variables as transient.
If the variable is confirmed as transient, then it will not be persisted. Transient keyword is used with that instance variable which will not participate in the serialization process. We cannot use static with a transient variable as they are part of the instance variable.Volatile: Volatile keyword is used with only variable in Java and it guarantees that the value of the vol