The Calculation of a Weighted Average of the Implied Volatility

question 43

Multiple Choice

The calculation of a weighted average of the implied volatility estimates from options on the Standard & Poor's 500 index using a wide range of exercise prices is known as

• A) Spider.
• B) QQQ.
• C) VIX.
• D) CIN.
• E) VOL.

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Definitions:

Nervous

Pertaining to the nerves or experiencing feelings of anxiety or apprehension.

Prefix

A morpheme added to the beginning of a word to modify its meaning, often used in linguistics and the formation of new words.

Suffix

A letter or group of letters added at the end of a word to modify its meaning or change it into a different word class.

Semipermeable Membrane

A layer that allows certain molecules or ions to pass through it by diffusion but blocks others, commonly used in osmosis processes.