Beware Quadruple Witching Day

Beware Quadruple Witching Day

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

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The video tutorial discusses the reasons behind increased volatility and trading volume, particularly due to investors closing profitable contracts and arbitrage opportunities. It highlights the impact on market indices like the S&P 500 and Dow Jones, noting typical declines in the following days. The tutorial also explains structural changes in trading, such as the need for indices to balance quarterly, affecting stock prices and trading strategies.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What factors contribute to increased trading volumes on certain days?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the significance of the December 1 trading volume mentioned in the text?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

How does the closing of profitable contracts affect market volatility in the following days?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

Explain the relationship between the Dow Jones indices and the S&P 500 as described in the text.

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What structural factors should be considered when analyzing trading today?

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