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dynamics may impact options prices in ways not previously examined. Moreover, this may be a step in the right direction of … identifying the supply and demand identification in options markets. Following in line with other work, this is in no way negates …-Scholes-Merton approach offers a very powerful but incomplete theory of options pricing. …
Persistent link: https://www.econbiz.de/10009476154
The paper analyses foreign investment and asset prices in a context of uncertainty over future government policy. The model endogenizes the process of learning by foreign investors facing a potentially opportunistic government, which chooses strategically the timing of a policy reversal in order...
Persistent link: https://www.econbiz.de/10009460360