How large are the benefits from using options?
UNSPECIFIED. (2002) How large are the benefits from using options? JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS, 37 (2). pp. 201-220. ISSN 0022-1090Full text not available from this repository.
The paper explores the economic value of being able to span market outcomes through the use of options. We model an economy with a single risky asset. Consumption takes place at one date, corresponding to the horizon of all investors. Options on the consumption good are not redundant securities in the economy because volatility is uncertain. The model enables us to examine the benefits to investors of using options to optimize their investments. Within this model, the gains from the use of options appear to be relatively minor.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HG Finance
H Social Sciences > HC Economic History and Conditions
|Journal or Publication Title:||JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS|
|Publisher:||UNIV WASHINGTON SCH BUSINESS & ADMINISTRATION|
|Official Date:||June 2002|
|Number of Pages:||20|
|Page Range:||pp. 201-220|
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