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42 If you observe a volatility skew on options on stock indexes, this may mean all of the following except.... Group of answer choices the
42
If you observe a volatility skew on options on stock indexes, this may mean all of the following except....
Group of answer choices
the market believes all the assumptions within Black-Scholes.
the market does not believe the returns on stocks will be normally distributed.
the market believes stock will become more volatile if stocks decline.
the market does not believe all the assumptions in Black-Scholes.
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