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📜 SIDE QUEST · DEEP DIVE · ◆◆◆◆◆ · ~12 min

The Volatility Smile, Explained

Why one volatility number can't price every option — and what desks do about it.

"The number that proves Black–Scholes is 'wrong'."

🚀 You're jumping ahead. This builds on Local & Stochastic Volatility — but play it now and you'll still earn full XP. If it feels steep, those make a gentler on-ramp.

A short lesson, then a quiz. ❤️×3 — a wrong answer costs a heart; finish with at least one left and the level is yours. Lose all three and you'll have to try again. Replay any time — XP and cleared levels are never lost.