Time-lags between Price Changes of Stocks and Stock Options

摘要: According to basic welfare economics, two fundamental reasons explain the existence of option markets. On one hand, introducing additional securities like options into an incomplete stock market will create more opportunities for spreading risks among participants, and therefore may lead improved risk allocation1. other increases informational efficiency capital market, if trading causes prices adjust rapidly new information2. This study is restricted latter possibility. Thus, consequences be judged by its impact on prices.