  In this paper, we mainly study the impact of the implied certainty equivalent
rate on investment in financial markets. First, we derived the mathematical
expression of the implied certainty equivalent rate by using put-call parity,
and then we selected some company stocks and options; we considered the
best-performing and worst-performing company stocks and options from the
beginning of 2023 to the present for empirical research. By visualizing the
relationship between the time to maturity, moneyness, and implied certainty
equivalent rate of these options, we have obtained a universal conclusion -- a
positive implied certainty equivalent rate is more suitable for investment than
a negative implied certainty equivalent rate, but for a positive implied
certainty equivalent rate, a larger value also means a higher investment risk.
Next, we applied these results to the electric vehicle industry, and by
comparing several well-known US electric vehicle production companies, we
further strengthened our conclusions. Finally, we give a warning concerning
risk, that is, investment in the financial market should not focus solely on
the implied certainty equivalent rate, because investment is not an easy task,
and many factors need to be considered, including some factors that are
difficult to predict with models.
