# What are some markets that don't have volatility smiles and why don't they?

I have read that volatility smiles didn't show up for equity options until 1987. Can some one give me an example(s) of what markets now still don't have volatility smiles and what an explanation for them not having equity smiles would be? thanks

• In many markets (esp. stock indexes) the actual volatility of the market varies as the market level goes up or down. The $\sigma$ of the underlying is not constant like BS assumed. And Fischer Black was one of the first to discover this. But this "leverage effect" is stronger or weaker in diff mkts. – Alex C Apr 16 '16 at 13:21