This paper examines how risk in trading activity can affect the volatility of asset prices. We look for this … swap spread tends to converge to a long-run level, although trading risk can sometimes cause the spread to diverge from … that level. -- convergence trading ; interest rate swaps ; swap spread ; repurchase contracts ; trading risk ; volatility …

dividend process of a risky asset. Under perfect information, the presence of risk-neutral arbitrageurs unambiguously reduces …

episodes of increased inflation uncertainty, our results suggest that these contracts are flexible both ex ante and ex post to …

, rational herding arises because of information-event uncertainty. We estimate the model using 1995 stock market data for …