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Persistent link: https://www.econbiz.de/10010493908
This paper studies a principal-agent model in which the information on future firm performance is ambiguous and the agent is averse to ambiguity. We show that if firm risk is ambiguous, while stocks always induce the agent to perceive a high risk, options can induce him to perceive a low risk....
Persistent link: https://www.econbiz.de/10011629993