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The volatility smile is a long-observed pattern in which at-the-money options tend to have lower implied volatilities than other options. The pattern displays different characteristics for different markets and results from the probability of extreme moves

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Q: What is volatility smile?
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What is the volatility of sugar?

The volatility of sugar is 600.00


Black Scholes Why do you think implied volatility from option prices diverge from their theoretical values?

Black-Scholes assumes the returns on prices follows a Normal (Gaussian) distribution. As the markets figured out this isn't the case, traders started demanding more money for options that were further out-of-the-money. This is called the "volatility smile".


What is volatility of alcohol?

Volatility is the measure of how easily something evaporates.


What does volatility mean in finance?

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What is the relationship of boiling point with volatility?

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Is volatility a word?

Yes, volatility is a word and it means unstable or easily susceptible to external influences.For example, the volatility of the Stock Marketincreases as the economy weakens.


What is implied volatility for stocks?

The implied volatility is the volatility that gives the current option price (given the risk free rate, dividend, time to maturity and strike price). The related link contains a spreadsheet to help you calculate implied volatility in VBA


What is the volatility of vodka?

volatility is the relative rate at which the price of a security moves up and down. Volatility is found by calculating the annualized standard deviation of daily change in price. If the price of a stock moves up and down rapidly over short time periods, it has high volatility. If the price almost never changes, it has low volatility


What are the examples of volatility in matter?

volatility is a property of matter. volatility of matter tells u the ability of that particular matter to evaporate. certain type of matter may have high degree of volatility where as others may have low or even no volatility.. eg: petrol is highly volatile. Even if it is left for a small time in the sun, it will evaporate very quickly.


What is the volatility of Alkanes?

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What is the relative volatility of propane propylene system?

Relative volatility is a function of temperature, At 316.4 K, for example, the relative volatility of propylene to prapane is 1.136. Values for other temperatures are available at the International Critical Tables.


Why volatility in hydrochloric acid sulfuric acid?

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