Which of the Following Is True

question 8

Multiple Choice

Which of the following is true?

• A) Volatility smile for European puts is the same as for European calls
• B) Volatility smile for European puts is the same as for American puts
• C) Volatility smile for European calls is the same as for American calls
• D) Volatility smile for American puts is the same as for American calls

---

Definitions:

Self-Understanding

An individual's awareness and comprehension of their own personality, behaviors, emotions, motivations, and beliefs.

Hierarchy Of Needs

A motivational theory in psychology comprising a five-tier model of human needs, depicted as hierarchical levels within a pyramid.

Traits

Relatively stable tendencies of individuals.

Motives

The psychological entities that drive us to behave in ways that will help us meet our goals.