Why Is It Considered That Implied Volatility of Interest Rate

question 15

Essay

Why is it considered that implied volatility of interest rate options has a "hump" shape?

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Definitions:

Organizational Commitment

An individual's psychological attachment to an organization, reflecting their loyalty and the extent of their identification with the organization's goals.

Abilities

The natural talents and acquired skills that individuals possess, which enable them to perform specific tasks or engage in particular activities effectively.

EVLN Model

A framework describing four different responses employees might have to dissatisfaction at work: Exit, Voice, Loyalty, and Neglect.

Dissatisfied

A state of feeling unfulfilled or unhappy with a situation, product, or service, often leading to complaints or seeking alternatives.