You and a colleague both follow the movements of the VIX, an index based on options prices
Question:
You and a colleague both follow the movements of the VIX, an index based on options prices that reflects investors’ expectations for stock market volatility. Suppose, according to the VIX, implied volatility is expected to be low for a protracted period. Your colleague sees this as unambiguously good news. Why might you disagree?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Money Banking and Financial Markets
ISBN: 978-1259746741
5th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
Question Posted: