Why Is There an Inverse Relationship Between Implied Volatility and Strike

question 3

Essay

Why is there an inverse relationship between implied volatility and strike price in equity options? _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ ___

---

Definitions:

Dissociative Identity Disorder

A psychiatric diagnosis that describes a condition involving the presence of two or more distinct personality states or identities in a single individual, often a result of severe trauma.

Clinical Psychologist

A professional who applies psychological principles and techniques to assess, diagnose, and treat mental health issues and promote psychological well-being.

Child Abuse

Physical, sexual, emotional abuse, or neglect of a child by a parent, guardian, or caregiver.

Fugue State

A scarce mental disorder distinguished by reversible forgetfulness pertaining to self-identity, encompassing memories, individual personality, and other features that distinguish an individual.