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When one takes volatility skew into account, The first term is equal to the premium of the binary option ignoring skew:

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05.12.2017 · Volatility Skew Definition: Using the Black Scholes option pricing model, we can compute the volatility of the underlying by plugging in the market prices

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10.07.2017 · Learn About Volatility Skew. Search However, after the stock market crash that occurred in October 1987, something unusual happened to option prices.