Aydin, Halil Ibrahim; Degerli, Ahmet; Ozlu, Pinar - Türkiye Cumhuriyet Merkez Bankası - 2010
This paper uses over-the-counter currency options data to investigate market expectations on Turkish Lira-U.S. Dollar exchange rate. We extract option implied density functions to examine the evolution of market sentiment over the possible values of future exhange rates. Uncertainty is well...