Bridging the Information Gap between Microfinance Institutions and International Capital Markets by Investigating the Efficiency of the Informational Role of Stock and Option Trade Volumes. The Case of the European Derivative Exchange and the Frankfurt Stock Exchange

his paper examines the monthly interrelation of option volume and price return for actively traded Frankfurt Stock Exchange stocks and their European Derivatives Exchange traded options during the trading period of May to August 2002. The purpose is to investigate whether microfinance institutions should seek investment opportunities in the stock or derivative market. Through our findings, it will be shown that option trade volume has substantial predictive information ability for entrepreneurs and investors to get a better return