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Answer the following questions related to Options & VIX. Go to nasdag.com/market-activity. Enter a stock symbol in the search box, then choose Option Chain from

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Answer the following questions related to Options & VIX. Go to nasdag.com/market-activity. Enter a stock symbol in the search box, then choose "Option Chain" from the left sidebar menu From there, note how you can filter through the variety of options available for this particular stock. Click on several of the months listed to see the different options that are available for each month. If you don't understand what you're looking at, then try to figure it out... You should be familiar with calls, puts, bids, asks, strike prices, in/out of the money, etc. 1. Use the option chain for next month. Choose one call option and one put option for which there is moderate "volume." Write down the following details for each option: the option type, strike price, current price (i.e. premium), and expiration 2. Use an option chain 4-5 months into the future. Choose one call option and one put for option for which there is moderate "volume." Try to choose options with the same (or similar) strike prices to the ones you used in #1. Again, write down the option type, strike price, current price (i.e. premium), and expiration 3. Continue clicking around and comparing prices. As the expiration gets further into the future, what happens to the premium? 4. Describe the longest-term options listed. Is there much trading activity (volume) for these options? 5. Click on 'Most Actives' near the top of the page. This shows you which options have been traded the most for this stock. Which call and put options are most active for this company? Generally, what are the expirations and premiums for these options? 6. Look up your company's current stock price and its recent price range over the last year. How do these prices compare with the available options for the stock? VIX 7. Explain how the VIX is calculated, and the theory behind the VIX calculation 8. Look up a price chart for the VIX Index (use Yahoo Finance, Chicago Board Options Exchange - CBOE, or some other source). How does it currently compare to its values over the last 12 months? 9. Compare the VIX Index to the S&P 500 over a period of at least five years. What correlation, if any, do you nonce? Answer the following questions related to Options & VIX. Go to nasdag.com/market-activity. Enter a stock symbol in the search box, then choose "Option Chain" from the left sidebar menu From there, note how you can filter through the variety of options available for this particular stock. Click on several of the months listed to see the different options that are available for each month. If you don't understand what you're looking at, then try to figure it out... You should be familiar with calls, puts, bids, asks, strike prices, in/out of the money, etc. 1. Use the option chain for next month. Choose one call option and one put option for which there is moderate "volume." Write down the following details for each option: the option type, strike price, current price (i.e. premium), and expiration 2. Use an option chain 4-5 months into the future. Choose one call option and one put for option for which there is moderate "volume." Try to choose options with the same (or similar) strike prices to the ones you used in #1. Again, write down the option type, strike price, current price (i.e. premium), and expiration 3. Continue clicking around and comparing prices. As the expiration gets further into the future, what happens to the premium? 4. Describe the longest-term options listed. Is there much trading activity (volume) for these options? 5. Click on 'Most Actives' near the top of the page. This shows you which options have been traded the most for this stock. Which call and put options are most active for this company? Generally, what are the expirations and premiums for these options? 6. Look up your company's current stock price and its recent price range over the last year. How do these prices compare with the available options for the stock? VIX 7. Explain how the VIX is calculated, and the theory behind the VIX calculation 8. Look up a price chart for the VIX Index (use Yahoo Finance, Chicago Board Options Exchange - CBOE, or some other source). How does it currently compare to its values over the last 12 months? 9. Compare the VIX Index to the S&P 500 over a period of at least five years. What correlation, if any, do you nonce

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