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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Bob's golf score at his local course follows the normal distribution with a mean of 92.1 and a standard deviation of 3.8. What is the probability that the score on his next round of golf will be less than 100?
A) 0.5000 B) 0.7357 C) 0.8665 D) 0.9812
Which of the following accounts is not closed?
A) Income Summary B) Dividends C) Retained Earnings D) Interest Income