What volatility smile is likely to be caused by jumps in, Finance Basics

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What volatility smile is likely to be caused by jumps in

1. What volatility smile is observed for equities?

2. What volatility smile is likely to be caused by jumps in the underlying asset price? Is the pattern likely to be more pronounced for a 2-year option than for a 3-month option?

3. A European call and put option have the same strike price and time to maturity. The call has an implied volatility of 30% and the put has an implied volatility of 25%. What trades would you do?

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