15.10 Possible causes of volatility Smile Asset price exhibiting jumps rather than continuous change Volatility for asset price being stochastic (One reason for a stochastic volatility in the case of equities is the relationship between volatility and leverage) Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 15.10 Possible Causes of Volatility Smile • Asset price exhibiting jumps rather than continuous change • Volatility for asset price being stochastic (One reason for a stochastic volatility in the case of equities is the relationship between volatility and leverage)