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A Study on Information Contents in the Volatility Spread in KOSPI market

초록

영어

This research examines information content and origin of the volatility spread of KOSPI200 index, which is the difference in implied volatility of call and put options of KOSPI200 having the same maturity and strike. Kim (2011) discovered that the volatility spreads of KOSPI200 options precedes KOSPI200 index return rate. Using a more recent data set of KOSPI200, this study shows that the volatility spread shows forecasting power on KOSPI200 return rate as in Kim (2011). Further, it reveals the fundamental cause of volatility spread is the basis between spot and futures of underlying asset. In addition it has been indicated that spread of spot and futures are the more reliable information in predicting KOSPI200 return than the volatility spread index return rate through VAR analysis and theoretical explanation respectively. This study differs to Kim(2011) mainly in considering futures as key role.

목차

Abstract
 Ⅰ. Introduction
 Ⅱ. Literature Review
 Ⅲ. Analyzing and Data Selection Methods
 Ⅳ. Volatility Spread by Underlying Asset
  1. Implied Volatility Affected by KOSPI200 Index
  2. Implied Volatility by KOSPI200 Futures
  3. Implied Volatility Affected by KOSPI200 Future Synthetic
 Ⅴ Analysis on the Causes of Volatility Spread
 Ⅵ Volatility Spread and Information Content
 Ⅶ Conclusion
 References
 Table

저자정보

  • Gunwoo Nam Hanyang University
  • Junwoo Lee Hanyang University
  • Hyoungoo Kang Hanyang University
  • JongYoen Choi Hanyang University

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