I use VOX to determine the volatility swap rate and the S&P 100 Index's log closing levels to compute the realized volatility.
Similarly, a volatility swap writer selling one contract from January 2, 1986 to end of November 2004 obtains a cumulative profit of $84,529,002.
Thus, there is strong evidence that variance and volatility swap rates generally favor the swap writers.
In addition, support for equities has expanded with the inclusion of equity volatility swaps
The graduate textbook explores variance and volatility swaps
for financial markets with underlying assets following the Heston model, the valuation of variance swaps for stochastic volatilities with delay, a semi-Markov modulated market consisting of a riskless bond and a risky stock, variance and volatility swaps
for volatilities driven by fractional Brownian motion, and explicit option pricing of a mean-reverting asset in energy markets.
The type of control was previously available to only large institutions in the often opaque and unregulated over-the-counter volatility swaps