Pathak, Rajesh; Kumar, Satish; Ranajee, Ranajee - In: Managerial Finance 43 (2017) 4, pp. 471-487
is changed from American to European. Findings The study reports that the volatility smirk of European style options …, unlike American style options, predict the underlying cross-sectional equity returns. Firms with steepest volatility smirk … robust and signify the delay of equity market in incorporating information impounded in the volatility smirk. Originality …