Which of the Following Would Represent the Most Appropriate Definition

Multiple Choice

Which of the following would represent the most appropriate definition for implied volatility?

A) It is the volatility of the underlying asset's returns implied from the price of a traded option and an option pricing model
B) It is the volatility of the underlying asset's returns implied from a statistical model such as GARCH
C) It is the volatility of an option price implied from a statistical model such as GARCH
D) It is the volatility of an option price implied from the underlying asset volatility