Long Position In The VIX

This problem practices understanding how volatility exposure works in capital markets, especially the difference between spot volatility and tradable VIX futures. Candidates need to think through the structure of the futures curve, how positions must be rolled as contracts approach expiry, and how that rolling process affects returns over time. Interviewers ask this kind of question to test whether a candidate understands that VIX exposure is not a simple directional bet, and that product mechanics can matter as much as the market view itself.