Which of the Following Statements About Implied Volatility Is True

question 54

Multiple Choice

Which of the following statements about implied volatility is true?

• A)VIX is the implied volatility on the Standard and Poor's index, and VXN is the implied volatility on the New York Stock Exchange Index.
• B)VIX is the implied volatility on the Standard and Poor's index, and VXN is the implied volatility on the NASDAQ index.
• C)VIX is the implied volatility on the NASDAQ index, and VXN is the implied volatility on the Standard and Poor's index.
• D)VIX is the implied volatility on the New York Stock Exchange index, and VXN is the implied volatility on the Standard and Poor's index.

---

Definitions:

Authorized Shares

The maximum number of shares that a corporation is legally allowed to issue, as specified in its articles of incorporation.

Total Capital

The sum of a company's debt and equity, representing the total funds available to the business for use.

Cash Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.

Date of Record

The specific date set by a corporation on which the shareholders of record are identified and entitled to receive dividends or distributions.