Consider the situation in Merton's jump-diffusion model where the underlying asset is a non-dividend-paying stock. The average frequency of jumps is one per year. The average percentage jump size is \(2 \%\) and the standard deviation of the logarithm of the percentage jump size is \(20 \%\). The stock price is 100 , the risk-free rate is \(5 \%\), the volatility, \(\sigma\) provided by the diffusion part of the process is \(15 \%\), and the time to maturity is six months. Use the DerivaGem Application Builder to calculate an implied volatility when the strike price is \(80,90,100,110\), and 120 . What does the volatility smile or skew that you obtain imply about the probability distribution of the stock price.