Volatility Smile |
| The variation of implied volatility with strike prices. |
| REMARKS |
| Volatility smile is a pattern in which at-the-money options tend to have lower implied volatilities than in/out-of-the-money options |
| A closely related concept is the "term structure of volatility" |
| The term structure of volatility refers to how implied volatility differs from related options with different maturities. |
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