The effect of option trading
Abstract This paper studies the effect of option trading on corporate investment and financing policies. Based on prior literature, I hypothesize that option market induces informed trading and thus reduces information asymmetry and the cost of capital. As a result, firms with high option trading ha...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2021-08-01
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| Series: | Financial Innovation |
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| Online Access: | https://doi.org/10.1186/s40854-021-00279-5 |