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Suppose you calculate implied volatilities from the quoted prices of a whole range of European calls and puts on the same stock, with the same
Suppose you calculate implied volatilities from the quoted prices of a
whole range of European calls and puts on the same stock, with the
same maturity date, but the options have different strike prices. If the
BlackScholes equation correctly prices these options what would you
expect to observe in a graph of implied volatility on the yaxis against
the different strike prices on the xaxis
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