underlying stock (asset) is subject to discontinuous market regime type of shifts in its mean or volatility whose risk can be … risk are priced in option markets. The results of the paper clearly indicate that stock market regime shifts constitute … significant sources of risk which are priced in option markets. Ignoring these sources of risks will lead to significant option …

-sorted. We use this data set to perform asset-pricing tests for the german equity market. We test the standard CAPM, the Fama …

test the standard CAPM, the Fama-French three-factor model, and the Carhart four-factor model. Our tests are based on a …