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    Derivatives and Risk Management Study Set 2
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    Exam 5: Option Pricing Models: the Black-Scholes-Merton Model
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    The Pattern of Volatility Across Exercise Prices Is Often Called
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The Pattern of Volatility Across Exercise Prices Is Often Called

Question 18

Question 18

Multiple Choice

The pattern of volatility across exercise prices is often called


A) the price-fluctuation graph
B) the volatility smile
C) the term structure of implied volatility
D) the skew
E) none of the above

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