1. In this web exercise we use the Chicago Board Options Exchange website to cover options. While we will stay with basic coverage of the material, this website is capable of taking you into much more complex areas of derivative securities than the textbook. Go to www.cboe.com and click on “Products,” and then on the drop-down menu select “Products Main.”

2. What are the first five products offered?

3. Click on “VIX Volatility.” What does the title stand for? Why might this be considered a measure of risk?

4. Go back and click on “Products” at the top of the screen. Click on “Options on Single Stocks and Exchange Traded Products” in the drop-down menu. What is the purpose of these derivative products issued on ETPs?