You find the option prices for three June call options on the same stock. The $95$ call has an implied volatility of $35\%,$ the at the money $100$ call has an implied volatility of $25\%,$ and the $105$ call has an implied volatility of $30\%.$ This observation is often called $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

implied volatility $($WRONG$)$

None of the options are correct.

volatility smile.

variability