political uncertainty is priced in the equity option market as predicted by theory. Options whose lives span political events …We empirically analyze the pricing of political uncertainty, guided by a theoretical model of government policy choice …. To isolate political uncertainty, we exploit its variation around national elections and global summits. We find that …

political uncertainty is priced in the equity option market as predicted by theory. Options whose lives span political events …We empirically analyze the pricing of political uncertainty, guided by a theoretical model of government policy choice …. To isolate political uncertainty, we exploit its variation around national elections and global summits. We find that …

elections and global summits. We find that political uncertainty is priced in the option market in ways predicted by the theory …We empirically analyze the pricing of political uncertainty, guided by a theoretical model of government policy choice …. Options whose lives span political events tend to be more expensive. Such options provide valuable protection against the risk …