Equity options exhibit volatility smirk patterns in which implied volatility is greater for: A. high strike price options. B. low strike price options. C. in-the-money put and call options. D. out-of-the-money put and call options.
Equity options exhibit the “smirk” pattern, where implied volatility is greater for low strike price options. This would include call options, which are in-the-money and put options that are out-of-the-money.
