Volatility Smile
A common graphical shape that results from plotting the strike price and implied volatility of a group of options with the same expiration date.
Investopedia Commentary
A volatility smile is used by investors to price options in the foreign currency market and the equity option market.
Related Links
Options Basics Tutorial
See also: At the Money, Black-Scholes Model, Expiration Date, Implied Volatility, In the Money, Options, Out of the Money, Put Call Parity, Strike Price