Calculating Implied Volatility from an Option Price Using Python

I look at using Newton’s method to solve for the implied volatility of an option. This is done using the Black-Scholes model and a simple Python script.

My mouth and brain were apparently totally out of sync when discussing the numbers in the slide showing the spreadsheet results for the roots of a parabola. This is one of those situations where you should pay attention to what I am thinking rather than what I am saying. In any case, the numbers in the spreadsheet are correct.

Github: https://github.com/kpmooney/numerical_methods_youtube
Original Blog Post: https://kevinpmooney.blogspot.com/2017/07/calculating-implied-volatility-from.html

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