Using an estimation technique from the econometrics literature on limited dependent variables, we find that the unconditional expected abnormal stock-price performance associated with the proposal of an antitakeover amendment is negative and significant. We also provide the first direct evidence...

The option delta plays a key role in eliminating the risk in continuously rebalanced hedges. This need not be the case in discretely rebalanced hedges. Robins and Schachter (Management Science, June 1994) show how the minimum variance discretely rebalanced (European call) option hedge ratio...

The stochastic properties of discretely rebalanced option hedges have been studied extensively beginning with Black and Scholes (1973). In each analysis hedges were "delta-neutral" after rebalancing. We argue that the distributional properties of discretely rebalanced hedges are such that...