Drechsler, Itamar (contributor); Yaron, Amir (contributor) - 2008 - Current draft: May 2008
Wharton School, University of Pennsylvania and NBER, yaron@wharton.upenn.edu.
1 Introduction
That idea that volatility has a … role in determining asset valuations has long been a corner-
stone of flnance. Volatility measures, broadly deflned, are …. Derivatives markets, where volatility plays a prominent role, are therefore especially
relevant for unraveling the connections …