Which of the Following Statements Is NOT True of the VIX

question 50

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:

Location Selection

The process of choosing an optimal place for business operations, considering factors such as cost, accessibility, and market demand.

Goods

Physical items that are produced, bought, or sold to satisfy wants or needs of consumers.