Quantitative equity researchers typically work with so-called jump-diffusion processes to model the time series of stock prices. That is, while diffusions result in normally distributed returns, jumps allow for the possibility of rare and large positive or negative returns that would be extremely unlikely under the normal distribution. Which of the following are potentially appropriate examples of such jump realizations in returns?

I. A stop loss order for a fund is triggered at a price where the bid price difference between two limit order prices in the order book is very high.

II. Upon a decline in the price of a stock, investors cannot meet the maintenance margin resulting in a large sell volume for the stock.

III. A stocks return has some volatility as a result of relevant news, and more than 15% of returns are more than three standard deviations away from the average return.

	A.	Only III
	B.	Only II
	C.	I, II, and III
	D.	I and II