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The volatility smile you see shows that typically out-of-the-money options have higher implied volatility This also often includes the in-the-money-calls on the left side and the in-the-money-put options on the right side The cause of the volatility smile is option demand In markets where the volatility is increased and the market believes there is a potentially volatile trading range or break out potential for the underlying asset price, the implied volatility will be elevated It is simply demand driven The inverse of the volatility smile is the volatility frown shown in Figure 112; although the volatility frown is a less commonly used term This phenomenon happens frequently with stable equity assets You will notice that the representation is a shallow curve rather than a deep curve like the smile Typically when a stock or commodity is in a period of quiet fundamentals, stable, and in a narrow trading range, investor demand moves away from the out-of-the-money options to at-the-money positions This is not the smartest play in the world given that you are buying higher implied volatility at

This disease also stands apart from other acute viral infections by virtue of the latent period that follows inoculation with the virus and its distinctive clinical and pathologic features Human examples of this disease are rare in the United States; between 1980 and 1997, only 34 such cases are known to have occurred; since 1960, there have never been more than 5 or so cases in any one year In some areas (Australia, Hawaii, Great Britain, and the Scandinavian peninsula), no indigenous cases have ever been reported; in India, however, there is a high incidence The importance of this disease derives from two facts: it has been almost invariably fatal once the characteristic clinical features appear; hence the survival of the infected individual depends upon the institution of speci c therapeutic measures before the infection becomes clinically evident Furthermore, each year 20,000 to 30,000 individuals are treated with rabies vaccine, having been bitten by animals that possibly were rabid, and although the incidence of complications with the newer rabies vaccination is much lower than before, a few serious reactions continue to be encountered (see below and also Chap 36) Etiology Practically all cases of rabies are the result of transdermal viral inoculation by an animal bite In undeveloped countries, where rabies is relatively common, the most frequent source is the rabid dog In western Europe and the United States, the most common rabid species are raccoons, skunks, foxes, and bats among wild animals and dogs and cats among domestic ones Because rabid animals commonly bite without provocation, the nature of the attack should be determined Also, the prevalence of animal rabies virus varies widely in the United States, and local presence of the

postexposure prophylaxis should be given Human rabies immune globulin (HRIG) is injected in a dose of 20 U/kg of body weight (one-half in ltrated around the wound and one-half intramuscularly) This provides passive immunization for 10 to 20 days, allowing time for active immunization Duck embryo vaccine (DEV) has been available for the latter purpose and has greatly reduced the danger of serious allergic reactions in the CNS (encephalomyelitis) from about 1 in 1000 cases (the one formerly used with equine vaccine) to 1 in 25,000 cases The more recently developed rabies vaccine grown on a human diploid cell line (human diploid cell vaccine, or HDCV) has reduced the doses needed to just 5 (from the 23 needed with DEV); these are given as 1-mL injections on the day of exposure and then on days 3, 7, 14, and 28 after the rst dose The HDCV vaccine has increased the rate of antibody response and reduced even further the allergic reactions by practically eliminating foreign protein A thorough trial of the new antiviral agents in patients already symptomatic has not been undertaken Persons at risk for rabies, such as animal handlers and laboratory workers, should receive pre-exposure vaccination with HDCV A preventative DNA rabies vaccine has been genetically engineered and is being tested for use in animal handlers and others at high risk

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