Navigation path

434 - The Price and Risk Effects of Option Introductions on the Nordic Markets

Staffan Lindén, European Commission

The Price and Risk Effects of Option Introductions on the Nordic Marketspdf(793 kB) Choose translations of the previous link 

Summary for non-specialistspdf(94 kB) Choose translations of the previous link 


This paper examines the effects of option introductions on the price and risk of the underlying assets. The data, covering 58 introductions during the period 1985-1997, have been collected from the Nordic markets (Denmark, Finland, Norway, and Sweden). A persistent increase of stock returns is found right after the announcement date, rather than at the introduction date, as in US data. The volatility is found to decrease continuously over the ten-month period following the introduction of stock options.

(European Economy. Economic Papers. 434. December 2010. Brussels. PDF. 50pp. Tab. Graph. Bibliogr. Free.)

KC-AI-10-434-EN-N (online)
ISBN 978-92-79-14920-7 (online)
ISSN 1725-3195
doi:10.2765/46537 (online)

JEL classification: G12, G13, G14, G15

Additional tools

  • Print version 
  • Decrease text 
  • Increase text