10.1 Definition of Volatility10.2 Implied Volatilities10.3 Are Daily Percentage Changes in Financial Variables Normal?10.4 The Power Law10.5 Monitoring Daily Volatility10.6 The Exponentially Weighted Moving Average Model10.7 The GARCH(1,1) Model10.8 Choosing Between the Models10.9 Maximum Likelihood Methods10.10 Using GARCH(1,1) to Forecast Future VolatilitySummaryFurther ReadingPractice Questions and Problems (Answers at End of Book)Further QuestionsNotes