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8. Please draw the volatility smile for each of the following situations (a) The left and right tails of the distribution are thinner than those

8. Please draw the volatility smile for each of the following situations (a) The left and right tails of the distribution are thinner than those of the lognormal. Implied Volatility Strike Price (a) The right tail is fatter than that of the lognormal whereas the left tail is thinner. Implied Volatility Strike Price (c) Volatility is uncertain and positively correlated to the stock price. Implied Volatility Strike Price

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