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Options on SPX (and other indexes) exhibit an implied volatility skew. This phenomenon a) is inconsistent with Cost Of Carry model b) is inconsistent with
Options on SPX (and other indexes) exhibit an implied volatility skew. This phenomenon a) is inconsistent with Cost Of Carry model b) is inconsistent with the assumptions of the B-S-M model c) is indicative of arbitrage opportunities d) is inconsistent with the Binomial model e) b. and c. are correct
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