Series 7 - General Securities Representative Exam

Preview Mode

The VIX index measures the implied volatility of SPX index options. When the VIX is high, which of the following is TRUE?

It indicates fear in the marketplace
A
It indicates greed in the marketplace
B
It indicates that SPX options have low premiums
C
It indicates that CPI is low
D

Explanations

When the VIX is up and trading at high levels, it indicates fear in the marketplace. It has a mostly inverse correlation to the S&P 500 index

Pricing