Exchange Traded Products Bear Brunt of Volatility Spike

Exchange Traded Products Bear Brunt of Volatility Spike

Assessment

Interactive Video

Business

University

Hard

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The video discusses the current state of the VIX trade, highlighting its decline and the impact on the market. It covers the shutdown of certain products, such as ETFs and structured notes, and their underlying assets. The discussion also touches on stress points and potential ripple effects in the market due to recent volatility spikes.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the term 'one way trade' in the VIX market refer to?

A guaranteed profit strategy

A type of mutual fund

A government bond

A new trading platform

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which financial institution is mentioned as having shut down one of their products related to the VIX?

Morgan Stanley

JP Morgan

Nomura

Goldman Sachs

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary function of the financial products discussed in the second section?

To track the inverse return of VIX futures

To provide a fixed interest rate

To invest in real estate

To offer insurance against market crashes

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a major concern for the market due to recent volatility spikes?

Increased interest rates

New government regulations

Targeted selling by fund types

Rising inflation

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What might investors holding VIX-related products do in response to market changes?

Invest in real estate

Buy more government bonds

Liquidate to cover risks

Increase their holdings