Explain What Implied Volatility, as Measured by the VIX, May

question 31

Essay

Explain what implied volatility, as measured by the VIX, may mean to the overall stock market.

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Definitions:

Autonomic Nervous System

The autonomic nervous system is a part of the peripheral nervous system that controls involuntary body functions, including heart rate, digestion, and respiratory rate.

Peripheral Nervous System

The section of the nervous system that lies outside the brain and spinal cord, responsible for transmitting signals between the central nervous system and the rest of the body.

Cranial Nerves

Twelve pairs of nerves that emerge directly from the brain, rather than the spinal cord, and supply motor and sensory functions to the head and neck.

Ganglia

Structures containing a collection of nerve cell bodies, typically located outside the brain and spinal cord.