Multiple Choice
A variance swap is an option on the realized variance of a stock's return over a defined period of time.A variance swap may be replicated using
A) A static position in forwards and options on the stock.
B) A static position in stock,forwards and options.
C) A dynamic position in forwards and options on the stock.
D) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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