easy · FRM Part 2 Market Risk
Formula-and-meaning check before application in Market Risk.
Within Market Risk — Volatility & the Smile, which statement correctly describes Volatility skew?
- relationship between implied volatility and option maturity
- asymmetric strike pattern in implied volatility
- option-value sensitivity to a change in implied volatility
- volatility input that makes an option model price equal the observed market price
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