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NEW QUESTION: 1
Which one of the following statements is an advantage of using implied volatility as an input when calculating VaR?
A. Implied volatilities are better at predicting actual volatilities
B. Loss probabilities from the standard normal distribution are used to compute implied volatilities, which makes it easy to compute the.
C. Current market data is used to determine implied volatilities, which makes them forward looking measures
D. Implied volatility assumes volatilities are constant which makes it easy to implement in models.
Answer: C


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