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Which of the following regarding equity option volatility is true?
A
There is higher implied price volatility for away-from-the-money equity options.
B
"Crashophobia" suggests actual equity volatility increases when stock prices decline.
C
Compared to the lognormal distribution, traders believe the probability of large down movements in price is similar to large up movements.
D
Increasing leverage at lower equity prices suggests increasing volatility.
