How Volatility Rocked Stock Markets One Year Ago

How Volatility Rocked Stock Markets One Year Ago

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the volatility explosion in markets, focusing on exchange traded products that allowed investors to bet on market volatility. It highlights the lessons learned from these events, such as the importance of understanding market dynamics and the risks of products growing too large relative to their underlying assets. The discussion also covers the impact of these products on market rebalancing and the ongoing nature of short volatility trades, now primarily conducted by professionals. The video concludes with a reflection on the two main market strategies: long volatility and short volatility.

Read more

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was a significant outcome of the volatility explosion discussed in the video?

Introduction of exchange-traded products

Creation of new stock exchanges

Decrease in market volatility

Increase in interest rates

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was a key factor that contributed to the growth of products like XIV?

Government regulations

Increased market volatility

Combination of inflows and strong performance

Technological advancements

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

On which date did the significant market event involving exchange-traded products occur?

February 5th

April 5th

January 5th

March 5th

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential risk when a product grows too large relative to its underlying assets?

Increased liquidity

Market instability

Lower transaction costs

Higher returns

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

According to the video, what are the two main strategies in markets?

High risk and low risk

Growth and value

Long ball and shortfall

Active and passive