![]() ![]() The result is then multiplied by the result of the difference between the number of minutes to the expiration of the next term option (61,920) minus the number of minutes in 30 days (43,200).The result is multiplied by the volatility of the option, represented in the example by 0.066472.Use the same method to get the time to expiration in minutes for the 44-day option to get 43 days x 24 hours x 60 minutes = 61,920 (Step 4). The number of days we’ll be working with will technically be 15 (16 days minus 24 hours), so it's 15 days x 24 hours x 60 minutes = 21,600. to midnight on the settlement day (full 24 hours excluded). In other words, the time to expiration excludes midnight to 8:30 a.m. Assuming the VIX calculation time is 8:30 a.m., the time to expire in minutes for the 16-day option will be the number of minutes within 8:30 a.m. This figure is determined by using the time to expiration in minutes of the nearest term option divided by 525,600, which represents the number of minutes in a 365-day year. The first set of numbers to the right of the “=” represents time. ![]()
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