TY - JOUR T1 - Where Should You Buy Your Options? The Pricing of Exchange-Traded Certificates and OTC Derivatives in Germany JF - The Journal of Derivatives SP - 82 LP - 96 DO - 10.3905/jod.2006.650200 VL - 14 IS - 1 AU - Matthias Muck Y1 - 2006/08/31 UR - https://pm-research.com/content/14/1/82.abstract N2 - With the expansion of electronic exchanges and the nearly universal access to the Internet, it has become possible for retail investors to buy and sell exchange-traded derivative contracts from their desktops. In Europe this ability has even been extended to allow small investors to purchase over-the-counter exotic option contracts through the Internet. In this article, Muck analyzes the pricing of a variety of web-traded exotic instruments, available in this „market.” As one would expect, the contracts are overpriced on average, relative to theoretical valuations based on exchange-traded options on the same underlying DAX index. A second hypothesis, that overpricing diminishes as the contracts approach maturity receives a little less support.TOPICS: Interest-rates and currency swaps, options ER -