Calculate fair volatility strike for volatility swaps. Volatility swaps pay on realized vs implied volatility. They trade at a discount to variance swaps due to the convexity correction.
Enter the values for the scenario you are assessing. Calculate fair volatility strike for volatility swaps. Volatility swaps pay on realized vs implied volatility. They trade at a discount to variance swaps due to the convexity correction. Use the volatility swap result to inform your calculation.