What does India VIX represent?

The historical volatility of the Indian stock market. The forecasted volatility of the Indian stock market. The implied volatility of the Indian stock market over the next 30 days. The realized volatility of the Indian stock market.

Which type of volatility is calculated using past closing prices of a stock or index?

Historical Volatility Forecasted Volatility Implied Volatility Realized Volatility

What is the primary driver of option premium increases when market volatility rises?

Delta Gamma Theta Vega

Which of the following is a statistical model used for forecasting volatility?

Black-Scholes Model Fibonacci Retracement Moving Average Convergence Divergence (MACD) Generalized Autoregressive Conditional Heteroskedasticity (GARCH) Process

When is the effect of volatility on option premiums the highest?

When there are few days left for expiry. When there are more days left for expiry. When the option is in the money. When the option is out of the money.

What does Vega measure?

The sensitivity of option premium to changes in the underlying asset price. The rate of time decay of an option. The rate of change of an option's delta. The rate of change of option premium with respect to changes in volatility.

Which type of volatility reflects the market participants' expectation of future volatility?

Historical Volatility Forecasted Volatility Implied Volatility Realized Volatility

What is the relationship between volatility and option premiums?

Option premiums increase when volatility decreases. Option premiums decrease when volatility increases. Option premiums are not affected by volatility. Option premiums increase when volatility increases.