Understanding Implied Volatility

An options trader is analyzing the options for ABC Corporation, which is currently trading at $50. The trader notices that the implied volatility of the options is significantly higher than the historical volatility of the stock.

Implied volatility is used to gauge market expectations of future volatility and reflects how much the market believes the price of a security will fluctuate over a given period. The trader is considering buying call options on ABC Corporation, as they expect the stock price to increase.

Which of the following statements about the implied volatility of options is true?