The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

VOLATILITY SMILE Definition & Legal Meaning

Definition & Citations:

When strike price and volatility of an option are compared. Investors prefer outofthemoney contracts because they are cheaper. Refer to volatility skew.


This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.