Download PDF Over the last few decades, the overnight and intraday returns of the American market exhibit strange behavior, considering that the highest share of returns accrue in the after-hours trading and not during the day, as most would have expected. Indeed, a good visualization of the phenomenon is shown Read more…
Download PDF Introduction Fixed income investments allow investors to generate steady cashflows in the future, diversify equity exposure, and lower portfolio volatility. Current inflationary pressures, tighter monetary policy, and concerns about the prospect of rising interest rates are making investors question how strategic exposure to fixed income securities can help Read more…
Download PDF Introduction This article will ostensibly be a distillation and discussion of the paper ‘Ex-Dividend Arbitrage in Option Markets’ by Hao, Kalay and Mayhew. [1] They find that a significant fraction of American call option holders do not behave in line with rational exercise policy regarding dividends, leaving money Read more…