Question

What is the ^VIX index and why is it so important? How do you explain the solutions and difference of Logarithmic and Polynomial solutions?

Answer 1

The Chicago Board Options Exchange Volatility Index, or VIX, is a real-time market index representing the market's expectations for volatility over the coming 30 days. Investors use the VIX to measure the level of risk, fear, or stress in the market when making investment decisions, VIX is imporatant because of working of the VIX is an index that measures the volatility of 500 stocks. The CBOE Volatility Index is designed to measure the market's expectation of stock market volatility as reflected in S&P 500 option prices.Puts and calls both increase in value when the expected volatility of the underlying asset increases.

Solution of logarithmic : Let 2log3x2 - log3(x+6) = 1

and solution of polynomial equation x2-12x-28 = 0

The diference between logarirthm and polynomial :

This polynomial is curved upwards, while the logarithmic curve looks like it's flattening out. The logarithmic curve never flattens out; it has no horizontal asymptotes, and grows without bound, but it does so slowly.let the f diference between logarirthm and polynomial example :-