3. Which of the following is true when the tails of a future foreign currency distribution are compared with those of a lognormal distribution with the same mean and standard deviation? A. The left tail and right tail are thinner B. The left tail is thinner and the right tail is fatter C. The right tail is thinner and the left tail is fatter D. Both tails are fatter 4. Which of the following is true when the tails of a future stock price distribution are compared with those of a lognormal distribution with the same mean and standard deviation? A. The left tail and right tail are thinner B. The left tail is thinner and the right tail is fatter C. The right tail is thinner and the left tail is fatter D. Both tails are fatter 5. Which of the following could cause the volatility smile typically seen for foreign currency options? A. Currencies are traded in different countries at different times of the day B. Currencies tend to have low volatilities C. The activities of central banks causes occasional jumps in the exchange rate D. Interest rates may be different in the two countries