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 volatility for a stock or index varies at different time horizons. This relationship is important because it helps to understand how expected volatility changes over time and how it impacts the price of options. When we look at the Term Structure, it’s important to distinguish between its different parts. This is important because often when investors talk about volatility, they refer to volatility in different parts of the curve. The short end of the curve is known as the front end. In this part of the curve, you can find all the short-term maturities. When we move along the curve, we then arrive at the back end, also known as the long end of the curve. Here we find the longer maturities. Source: Menthor Q Academy The Different Shapes of the Curve Now, the term structure cur…