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
It was a dark and stormy night. So begins the long and increasingly convoluted prose of Edwards Bulwer-Lytton’s best-known novel. Today the annual Bulwer-Lytton Contest asks contestants for fanciful first sentences that are similarly...
A librarian opens a book and finds a mysterious invitation scribbled on the back of a business card. Another discovers a child’s letter to the Tooth Fairy, tucked into a book decades ago. What stories are left untold by these forgotten...