St deviation in Black ScholesForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › St deviation in Black ScholesThis topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts August 21, 2017 at 6:28 am #402717 abbas7796MemberTopics: 135Replies: 256☆☆☆hello Johnthe st deviation in Black Scholes questions is normally given as variance %. however is this annual?suppose if the question says that the monthly st deviation of shares is 25%. in this case what number do we use for our formula for Black Scholes?please helpthanks August 21, 2017 at 10:22 am #402744 John MoffatKeymasterTopics: 56Replies: 53823☆☆☆☆☆It is annual.If you were given the monthly variance, then the annual variance is 12 times the monthly variance (and therefore the annual std deviation is the monthly std deviation x the square root of 12).AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In