for practice exam Q64, would the exam specify the shape of the smile? (e.g. heavy lift tail, lighter right tail). Or are we suppose to know the shape? if yes, could you please advise what's the correct shape of the volatility smile for each type of options? thank you!
64. A committee...
perhaps quite a simple question. I just read through the following CFA article
and now I am wondering whether Vol. Skew and Vol. Smirk can be used 1:1 interchangeably? Is there any difference between these two terms?
Vol Skew = Vol...