Volatility Models Volatility Smile Volatility Models The Volatility Smile is a term used to describe the relationship between implied volatility (IV) and the strike prices of options within the same expiration date. It visually appears as a U-shaped cu… Term Structure Volatility Models The Term Structure of Volatility is a graph that represents the relationship between the maturity of an option and its implied volatility rate. In other words, it shows how expected volatili…
