1. The following is a price graph of an ETF trading the VIX. The ETF will gain value when the VIX increases and vice versa

Q1: Evaluate: This ETF should mainly hold options as its assets.

Q2:2. If a trader correctly forecasted the upcoming volatility, a butterfly spread will be more profitable compared to a straddle

3. Protective Put strategy is better than Covered Call strategy when a fund manager expects stock market volatility will increase.

SPVXSTR/BARC 19 NYSEARCA: VXX - Jul 27, 4:38 PM EDT 11.17 USD 0.07 (0.63%) After-hours: 11.25 +0.72% 5 day 1 month 1 day 200 150 100 Open High Low 2014 10.99 11.80 10.99 2015 3 month 1 year 2016: Mit cap P/E ratio Div yield 5 year 2017 max