CMT Association CMT Level II Exam CMT-Level-II Question # 62 Topic 7 Discussion

CMT Association CMT Level II Exam CMT-Level-II Question # 62 Topic 7 Discussion

CMT-Level-II Exam Topic 7 Question 62 Discussion:
Question #: 62
Topic #: 7

Prior to a market top, what would one expect to see in a VIX reading?


A.

Increasing VIX levels, as more investors are adding protective measures


B.

An overbought VIX level, given an increase in long term S&P futures contracts.


C.

Generally low VIX levels, as there is often complacency among traders prior to tops


D.

An oversold VIX level, given a decrease in long term S&P futures contracts.


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