Which of the Following Is True

question 14

Multiple Choice

Which of the following is true?

• A) The volatility skew for equities is much more pronounced now than it was in 1985.
• B) The volatility skew for equities has a positive gradient
• C) The volatility skew for equities is consistent with the Black-Scholes-Merton model.
• D) The volatility skew for equities is similar to that for foreign currencies.

---

Definitions:

Analyzer

A person or tool that examines and evaluates something carefully to understand its components or structure.

Sensor

A device that detects or measures physical properties and records, indicates, or otherwise responds to it.

Left-Brain Dominant

Describes individuals who tend to be more analytical, logical, and detail-oriented, often excelling in tasks involving language and mathematics.

Logical

Pertaining to or characterized by clear, sound reasoning.