Which of the Following Statements About the Volatility Is Not

Multiple Choice

Which of the following statements about the volatility is not true?

A) the implied volatility often differs across options with different exercise prices
B) the implied volatility equals the historical volatility if the option is correctly priced
C) the implied volatility is determined by trial and error
D) the implied volatility is nearly linearly related to the option price
E) none of the above