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The Information Content of Prices in Derivative Security Markets / Louis Scott.

IMF eLibrary Available online

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Format:
Book
Government document
Author/Creator:
Scott, Louis.
Series:
IMF Working Papers; Working Paper ; No. 1991/132
IMF Working Papers
Language:
English
Physical Description:
1 online resource (42 pages)
Place of Publication:
Washington, D.C. : International Monetary Fund, 1991.
Language Note:
English
Summary:
Prices in futures markets and option markets reflect expectations about future price movements in spot markets, but these prices can also be influenced by risk premia. Futures and forward prices are sometimes interpreted as market expectations for future spot prices, and option prices are used to calculate the market’s expectations for future volatility of spot prices. Do these prices accurately reflect market expectations? The purpose of this paper is to examine the information that is reflected in futures prices and option prices. The issue is examined by reviewing both the relevant analytical models and the empirical evidence.
Notes:
Bibliographic Level Mode of Issuance: Monograph
Description based on print version record.
ISBN:
9781455216239
1455216232
9781462334766
1462334768

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