Which of the Following Statements Is NOT True of the VIX

question 55

Multiple Choice

Which of the following statements is NOT true of the VIX?

• A) It is calculated based on prices of call and put options of the S&P 500.
• B) Investors who want to hedge against stock market volatility can sell VIX options.
• C) A VIX of 10 indicates investors expect the S&P 500 to fluctuate by 10% at an annual rate over the next 30 days.
• D) The VIX is a measure of fear in the stock market.

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Definitions:

Superposition

A principle in geology that states in an undisturbed sequence of rocks, layers on the bottom are older than those above them.

Original Horizontality

A rule indicating that sediment layers are initially laid down in a horizontal manner due to the force of gravity.

Siccar Point

A location in Scotland famous for its unconformity, visible as an angular discordance between layers of sedimentary rock, demonstrating deep geological time and processes.

Unconformity

A surface of contact between two groups of unconformable strata, indicating a period of erosion or non-deposition in the geological record.