smile
n.— «A reference to the common shape of a graph of at- or out-of-the-money put and call implied volatilities for options with a common expiration date. The name comes from the fact that the furthest out of the money options generally have the highest implied volatilities, causing the ends of the graph to turn up. » —by Gary L. Gastineau, Mark P. Kritzman Dictionary of Financial Risk Management , 1999. (source: Double-Tongued Dictionary)
Further reading
“What has a head like a cat, feet like a cat, a tail like a cat, but isn’t a cat?” Answer: a kitten! A 1948 children’s joke book has lots of these to share with kids. Plus: an easy explanation for the difference between...
Book recommendations and the art of apology. Martha and Grant share some good reads, including an opinionated romp through English grammar, a Spanish-language adventure novel, an account of 19th-century dictionary wars, and a gorgeously illustrated...