This article studies the profitability of the Moving Average (MA) trading rule in the cross-rate market. We show that the MA rules are profitable if the two currencies belong to different economic zones. In addition, our study demonstrates that the interest rate differential has little effect on...

This article examines the factors that are not considered in the Black-Scholes model in determining the price of warrants. Using the outstanding percentage as a threshold variable, we test for the existence of threshold effect in warrant prices. It is shown that for warrants with a low...