Q-732.2. Assume that $V^2(r)$ signifies some measure of realized asset price variance and $V(r)$ signifies some measure of realized asset price volatility. Also, $F(T, V^2)$ is a prespecified fixed variance and $F(T, V)$ is a prespecified fixed variance rate; aka, forward price. If $(N)$ is the notional amount, then the payoffs to a variance and a volatility swap are given by: - Payoff to a variance swap: $[V^2(r) - F(T, V^2)] \cdot N$ - Payoff to a volatility swap: $[V(r) - F(T, V)] \cdot N$ Against that mathematical context, each of the following is true about variance or volatility swaps EXCEPT which is false? | Financial Risk Manager Part 1 Quiz - LeetQuiz