Which of the following statements is NOT true of the VIX?

A) It is calculated based on prices of call and put options of the S&P 500.
B) Investors who want to hedge against stock market volatility can sell VIX options.
C) A VIX of 10 indicates investors expect the S&P 500 to fluctuate by 10% at an annual rate over the next 30 days.
D) The VIX is a measure of fear in the stock market.

B

Economics

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