15.11 Volatility Term Structure In addition to calculating a volatility smile, traders also calculate a volatility term structure This shows the variation of implied volatility with the time to maturity of the option Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 15.11 Volatility Term Structure • In addition to calculating a volatility smile, traders also calculate a volatility term structure • This shows the variation of implied volatility with the time to maturity of the option