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On Tuesday, May 7th, U.S. markets freaked out because of the fear that there might be a trade war looming. The NASDAQ (QQQ) dropped by a bit more than 2% and the VIX jumped from about 15 to a daily high of 21.5, before settling back to close at about 20. The near-term options, represented by the VIX, responded sharply to the news. When there are information shocks in the market, it is always interesting to see how the long-dated options markets respond. As it happens, I had just published an