I understand how to calculate volatility and how to calculate call or put price. However I don't understand something about input parameters.
For an example.
At the moment I am writing this post, implied volatility for Appl with 190 Strike Call is 22,69%. My question is, based on what TERM? (Time). Because if you want to calculate real implied volatility you must need to know what period of time to include. Time to excerise doesn't tell you much, if you don't know what period you must watch. One month, half a year, one year, 2 years etc.. I assume this 22,69 implied volatility is based on days_to_expire_parameters/some_period. I am trying to figure what is this some_period. I