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1. Demonstrate how VIX futures work and critically evaluate how risk can be hedged using VIX futures and, on the other hand, what risks such

1. Demonstrate how VIX futures work and critically evaluate how risk can be hedged using VIX futures and, on the other hand, what risks such a strategy can bring.

2. Analyze how the VIX index performed since the start of the COVID-19 pandemic and explain why.

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Answer 1 VIX futures are financial instruments that track the expected volatility of the stock market as indicated by the Chicago Board Options Exchan... blur-text-image

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