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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