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Which of the Following Is True of a Volatility Smile

Question 10

Multiple Choice

Which of the following is true of a volatility smile?


A) Implied volatility is on the horizontal axis and strike price is on the vertical axis
B) Historical volatility is on the horizontal axis and strike price is on the vertical axis
C) Implied volatility is on the vertical axis and strike price is on the horizontal axis
D) Historical volatility is on the vertical axis and strike price is on the horizontal axis

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