15.12 Volatility Term Structure The volatility term structure tends to be downward sloping when volatility is high and upward sloping when it is low Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 15.12 Volatility Term Structure The volatility term structure tends to be downward sloping when volatility is high and upward sloping when it is low