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Summary and Conclusions

  • Martin Mandler
Chapter
  • 130 Downloads
Part of the Contributions to Economics book series (CE)

Abstract

In this book we first reviewed techniques to extract implied probabilities from option prices and presented some empirical applications. We discussed how implied probabilities can be interpreted as representing the expectations of a risk-neutral agent with respect to the underlying’s price in the future. We then explained various methods used for the presentation and interpretation of risk-neutral probabilities. In Chapter 5, we reviewed in some detail the most important techniques for extracting implied probabilities from option prices that in turn were compared with respect to robustness and issues related to their implementation in Chapter 6.

Keywords

Monetary Policy Central Bank Option Price Market Participant Federal Fund Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2003

Authors and Affiliations

  • Martin Mandler
    • 1
  1. 1.Department of Economics and Business AdministrationUniversity of GießenGießenGermany

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