Hello, looking at the volatility term structure of an index fund, suppose the following are the implied volatilities of at the money options with 1 week, 2 weeks, 3 weeks, and 4 weeks left until expiration: 10.4%, 10.5%, 10.1%, and 11%. What could be reasons for that third weeks options being underpriced in relation to the other weeks. Usually I see the implied volatility gradually increase the farther out you go, so it seems like they should all be slightly higher than the previous week….