What volatility smile is likely to be observed when (a) Both tails of the stock price distribution are less heavy than those of the lognormal distribution (b) The right tail is heavier, and the left tail is less heavy, than that of a lognormal distribution ...

What volatility smile is likely to be observed when (a) Both tails of the stock price distribution

Question:

What volatility smile is likely to be observed when
(a) Both tails of the stock price are less heavy than those of the lognormal
(b) The right tail is heavier, and the left tail is less heavy, than that of a lognormal
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...