This measure won't account for your volatility σ from the underlying asset. Unlike past inputs, volatility is indirectly observable from industry details, but ought to rather be computed in certain product, generally utilizing ATM implied volatility within the Black–Scholes design. Dispersion is proportional to volatility, so standardizing by volatility yields:[nine] https://implied-volatility38394.nizarblog.com/27101380/an-unbiased-view-of-strike-price