I have been a professional options trader for over 11 years. In my
experience most options traders fail, and for two reasons: naive faith
in mathematical models and software, and a basic misunderstanding of the
concept of implied volatility.
Describe and explain the constraints on the term structure, smile slope and smile convexity of the implied volatility surface. Give a numerical example of each in terms of option prices.
Showing posts with label smile slope. Show all posts
Showing posts with label smile slope. Show all posts
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