Friday, May 23, 2008

Nifty Volatility index

Nifty has come up with Volatility index recently and is also planning to come with futures and options on VIX. Volatility index helps determine investors their trading strategy and it could also be used to hedge portfolios.In recent past we have seen inverse relation in volatility ie Markets facing a downfall with increase in volatility & vice versa

Volatility index computation method attached
http://rapidshare.com/files/117006591/vix_comp_meth.pdf.html

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