We have studied historical volatility and implied volatility in past chapters, with the latter finding applications in **options trading**; as IV is forecasted volatility, with its value determined from the market price of options, using Black-Scholes option pricing model. While IV is the forecasted volatility, which is “expected” to prevail as we step into the future. But we are aware, that this is an estimate and the actual realized volatility during the forward-looking period may be different. This actual volatility observed during the forward-looking period is called future realized volatility (FRV).