Volatility Surface: a 3-D visualization that plots volatility smile and term structure of volatility in a consolidated three-dimensional surface on a given underlying asset. Option traders quickly determine the shape of the implied volatility surface and identify any areas where the slope of the plot (and therefore relative implied volatilities) seems out of line. The surface is also used to price options as it is important for an investor to ensure that their portfolio’s theoretical value is as close as possible to the market value.
We offer a variation of exchange traded surfaces across different product suites: from real time created “on the fly” using Eikon desktop surface app SURF, on demand through the Instrument Pricing Analytics API, on RICs and disseminated on Elektron, Eikon, Eikon excel and Datascope Select products. Surface are also available on Datastream with long time series histories. In addition, functionality within Eikon excel to request a surface on demand.