Implied volatility is the volatility input of an option-pricing model that reproduces an observed option price. Black-Scholes implied volatility specializes this inversion to the Black-Scholes model.
The Black-Scholes implied volatility is the volatility parameter that makes the Black-Scholes price equal an observed claim price.
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Implied volatility (IV) is a measure used in the financial markets to indicate the market's expectation of the future volatility of an asset, usually associated with options pricing. Unlike historical volatility, which measures past price fluctuations, implied volatility reflects the market's forecast of how much an asset's price is likely to move in the future.