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We develop a model of equilibrium entry, trade, and price formation in over-the- counter (OTC) markets. Banks trade derivatives to share an aggregate risk subject to two trading frictions: they must pay a fixed entry cost, and they must limit the size of the positions taken by their traders...
Persistent link: https://www.econbiz.de/10013084727
derivative data in growth estimates. Beyond the most recent Wacthel and Rousseau (2010) evidence which documents the interruption … derivative positively or insignificantly with a much smaller effect in magnitude. At the same time the impact of the crisis is …
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We develop a model of equilibrium entry, trade, and price formation in over-the- counter (OTC) markets. Banks trade derivatives to share an aggregate risk subject to two trading frictions: they must pay a fixed entry cost, and they must limit the size of the positions taken by their traders...
Persistent link: https://www.econbiz.de/10012459749
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alternative models for majority of the underlying stocks of commercial banks of India. This finding implies that in selecting the …
Persistent link: https://www.econbiz.de/10013137723
The area of Financial Derivatives is a recent origin in India. The Derivative market in India was introduced in step by … step manner. The players in the market use the derivative market for speculation and hedging their portfolio risk. The …
Persistent link: https://www.econbiz.de/10013010498