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does implied volatilty factor in all known future events?
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in short, yes. implied volatility will capture any expected upcoming material announcements. there is also supply/demand impact bundled in which may inflate an option price, and by extension increase implied volatility. otm and itm options are particularly predisposed to this phenomenon -- which is of course at odds with the traditional bs model assumptions -- the result is referred to as the volatility smile. implied volatility is quoted as an annualised measure but isn't necessarily an annual value -- it will correspond to the option time period.
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