Implied Volatility Functions

The book "Implied Volatility Functions" by Veli-Matti Ahoranta offers a comprehensive examination of implied volatility patterns in the Finnish warrant market. It questions the validity of the Black-Scholes model by analyzing the existence of volatility smiles and smirks across various financial markets. The work aims to determine the structure of volatility in the Finnish warrant markets and to investigate whether there are better methods for estimating volatilities than the basic Black-Scholes model. By analyzing data from 2006, it provides interesting insights into the volatility structures in the Finnish markets, offering valuable perspectives on the dynamics of the warrant markets.