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a) IV Rank measures where the current IV stands relative to its highest and lowest values over a specific period (according to lookback period selected), expressed as a percentage.
Example: Suppose an instrument has an IVR of 50 over the lookback period of 1 year, it indicates that the current IV is at the midpoint of its range over the past year.
b) The IV Percentile indicates the percentage of days over a specific period (according to lookback period selected) that the IV was below the current level.
Example: Suppose the current IVP for an instrument is 75 over the lookback period of 1 Year, it means that the current IV is higher than 75% of the observed values in the past year, indicating relatively high implied volatility.
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