What insight does the Volatility Cone provide about implied volatility? Option: It calculates the expected return from an option strategy, It compares current implied volatility to historical realized volatility, It predicts the future direction of implied volatility, It identifies the optimal strike price for option trading

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What insight does the Volatility Cone provide about implied volatility?

It calculates the expected return from an option strategy

It compares current implied volatility to historical realized volatility

It predicts the future direction of implied volatility

It identifies the optimal strike price for option trading

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What does the Volatility Cone help traders evaluate?

The optimal time to exercise an option

The likelihood of a market crash

The future direction of stock prices

The costliness of an option

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What is the term for the graphical representation of how implied volatility for options of the same underlying asset and expiry date often differs in reality?

Volatility Cone

Volatility Smile

Implied Volatility Curve

Delta Surface

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

Forecasted Volatility

Realized Volatility

Historical Volatility

Implied Volatility

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

Forecasted Volatility

Realized Volatility

Implied Volatility

Historical Volatility

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What does India VIX represent?

The realized volatility of the Indian stock market.

The forecasted volatility of the Indian stock market.

The historical volatility of the Indian stock market.

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