Question: VIX is a volatility index on the S&P 500 index. The index tends to stay low (around 15%) during calm market conditions, but can jump

VIX is a volatility index on the S&P 500 index. The index tends to stay low (around 15%) during calm market conditions, but can jump up as high as 80% during crisis times. The distribution of returns on VIX futures tend to be highly positively skewed as the index tends to spike up quickly and then come down slowly. Now options on VIX futures are actively traded. At a given maturity, how do you expect the VIX option implied volatility to vary with the strike price?"

		does not vary with strike
		increase with strike
		decrease with strike

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