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a. What is a volatility smile, and what is volatility skew? (4??)b. Explain the reverse skew for the Black-Scholes impliedvolatility of the SP500 index. (4??)

a. What is a volatility smile, and what is volatility skew? (4â??)b. Explain the reverse skew for the Black-Scholes impliedvolatility of the SP500 index. (4â??) 1 answer

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