A volatility swap is
A. An instrument that swaps the change in the value of a market variable for a fixed amount
B. A swap involving an asset whose volatility is greater than a certain level
C. An exchange of the implied volatility of an option at a future time for a fixed volatility
D. An exchange of the realized volatility of an asset for a fixed volatility
D
A volatility swap is an exchange of the realized volatility of an asset over a period of time for a prespecified fixed volatility with both being multiplied by a notional principal.
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a. True b. False Indicate whether the statement is true or false
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Indicate whether the statement is true or false
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