effects, i.e., it is possible that the structure of the volatility surface changes without a change in the volatility level … state, I show that this superior performance is directly linked to a third volatility factor which is unrelated to the … volatility level. The second chapter studies the price of the smile, which is defined as the premia for individual option risk …

"In late 2008, the world's financial system was teetering on the brink of systemic collapse. While the impacts of the … occur in the future? This book draws on some of the world's leading experts on financial stability and regulation to examine …