Which of the following statements about implied volatility is true?
A)VIX is the implied volatility on the Standard and Poor's index, and VXN is the implied volatility on the New York Stock Exchange Index.
B)VIX is the implied volatility on the Standard and Poor's index, and VXN is the implied volatility on the NASDAQ index.
C)VIX is the implied volatility on the NASDAQ index, and VXN is the implied volatility on the Standard and Poor's index.
D)VIX is the implied volatility on the New York Stock Exchange index, and VXN is the implied volatility on the Standard and Poor's index.

Question

Quizplus · Accepted Answer

Implied volatility is the estimated volatility of a security's price, and VIX is the implied volatility on the Standard and Poor's index while VXN is the implied volatility on the NASDAQ index. Therefore, the correct statement is that "VIX is the implied volatility on the Standard and Poor's index, and VXN is the implied volatility on the NASDAQ index." None of the other statements are correct.

Which of the Following Statements About Implied Volatility Is True