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How to Calculate Volatility With Spot and Strip Prices

By Motley Fool Staff – Updated Apr 30, 2025 at 9:55 PM

Key Points

  • Spot price refers to the immediate settlement price of indexes, commodities, or currencies.
  • Strip price is the average of future prices for sequential delivery, actively traded in markets.
  • Volatility calculation involves the standard deviation of returns, significant for options on futures strips.
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