0 vivujainPro Asked: January 25, 20222022-01-25T18:40:42+05:30 2022-01-25T18:40:42+05:30In: FRM Part 2 Art of term structure 0 Plz explain Q-196 Share Sorry, you do not have permission to answer to this question. 1 Answer Oldest Shikshajain7501 Advanced 2022-02-02T00:42:47+05:30Added an answer on February 2, 2022 at 12:42 am As the volatility term structure is downward sloping against par rates, it will overstate the short term volatility and matches the market for long term.
As the volatility term structure is downward sloping against par rates, it will overstate the short term volatility and matches the market for long term.