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(a) Explain how to calculate implied volatility . (b) What is the benefit of knowing the implied volatility (i.e. VIX)? (a) What is Credit Default

(a) Explain how to calculate implied volatility

. (b) What is the benefit of knowing the implied volatility (i.e. VIX)?

(a) What is Credit Default Swap (CDS)?

(b) What does CDS tell us?

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