The observed volatility skew for a particular equity index slopes downward to the right. Compared to the lognormal distribution, the distribution of option prices on this index implied by BSM model have:
答案的注解是这样的：
A downward sloping volatility skew indicateds that out of money puts are more expensive than predicted by BSM model and out of the money calls are cheaper than expected predicted by BMS model. the implied distribution has fat left tails and thin right tails.
