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.


A

There was very little volatility skew or smile for equities prior to the crash of 1987

Business

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Indicate whether the statement is true or false

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Prairie Charters reported the following information at December 31, 2016: Common stock, $1 par, 500,000 shares authorized, 100,000 shares issued $100,000 Additional paid-in capital—Common 25,000 Retained earnings 75,000 Total stockholders' equity $250,000 The average recorded value per share of common stock at December 31, 2016, is

a. $1.00 b. $1.75 c. $1.25 d. $2.50

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Fill in the blank(s) with correct word

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Indicate whether the statement is true or false

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