moneyness, a result we use to infer skewness and kurtosis from volatility smiles. Evidence suggests that both kurtosis in …Prices of currency options commonly differ from the Black-Scholes formula along two dimensions: implied volatilities … vary by strike price (volatility smiles) and maturity (implied volatility of at­the­money options increases, on average …

, with numerical examples, the and effciency of this procedure in pricing interest rate options when the underlying interest …