Local volatility

Local volatility is a type of math used to measure the price of something, like stocks or options, over time. It looks at how the price changes over time in specific areas or "locations" to get a better understanding of the price movement. It can also be used to help investors make better decisions about which investments to make. To make this easier to understand, think of it like driving a car around a track. Local volatility looks at how the speed of the car changes in different areas of the track, like when it goes around corners or up hills. The speed of the car will change in different parts of the track, and local volatility looks at the changes in speed to help investors understand how prices are changing over time.