A Volatility Swap Is an Option on the Realized Standard

question 12

Multiple Choice

A volatility swap is an option on the realized standard deviation of a stock's return over a defined period of time. A volatility swap may be replicated using

• A) A static position in forwards and options on the stock.
• B) A static position in stock, forwards and options.
• C) A dynamic position in forwards and options on the stock.
• D) None of the above

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Definitions:

Biocolonialism

The exploitation of biological resources of developing countries by Western pharmaceutical or biotechnological companies without fair compensation.

Patriarchal Society

A societal structure where men hold primary power and predominate in roles of political leadership, moral authority, social privilege, and control of property.

Human Exceptionalism Paradigm

The belief that humans are separate from and superior to nature and other animals, often used to justify anthropocentric views and policies.

Cultural Accumulation

describes the process through which a culture gathers and amasses knowledge, traditions, and artifacts over time.