This paper presents striking evidence that option trading changes the prices of underlying
stocks. In particular, we show that on expiration dates the closing prices of stocks with listed …

This article shows that introducing derivative assets increases incentives to collect
information about asset payoffs. The increase in information collection makes the price of the …

The question of whether and to what extent option trading affects underlying stock prices has
been of interest to researchers since exchange-based options trading began in 1973 …

This paper analyses the effect of the introduction of derivatives (futures and options) in the
Spanish market on the volatility and on the trading volume of the underlying index. The …

Stock index futures were the most successful financial innovation of the 1980s. In spite of
their widespread use internationally, they continue to be criticised for causing 'aberrations' in …

This paper examines the risks and returns of Latin American stocks following American
depository receipt (ADR) listings in US equity markets and finds no systematic change in …

Previous research documents that the introduction of options seems to affect the volatility,
liquidity, price and other characteristics of the underlying stock. Existing research, however …

This article investigates the spot market's short-term price reaction on derivatives listing and
delisting in India. We comprehensively examine the derivatives listing and delisting with …

The impact of derivatives trading on the underlying stock volatility, and its characteristics, is
still debated both in the economic literature and among practitioners. The aim of this study is …

This paper introduces an alternative methodology to test whether financial derivative
introduction affects underlying stock return variance. Previous tests did not address the …