Fig. 6
From: A new logistic-type model for pricing European options
Evolution of implied volatility of the linear model for a fixed maturity time interval of \(T=1\) year. Left: Simulated path of underlying price using \(P = 1075.1, n_2 = 0.005, r = 1.57~\%, n_1 = 0.0013\) and \(\delta = 1.89~\%\). Right: Implied volatility curves for 1-year maturity calculated using the linear model at 5 selected underlying prices