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Option Model IV and Model Price


 

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Under the Options window in TWS, it's possible to add columns "Model IV %" and "Model".? Does anyone know how these values are calculated?? I suspect that they have a model for price and then simply calculate Model IV% using the Black-Scholes or similar formula.? If that's the case, how do they determine the price as it's often very different than midpoint or last traded price?


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