Do Futures and Options trading increase stock market volatility ?

@inproceedings{Shenbagaraman2003DoFA,
  title={Do Futures and Options trading increase stock market volatility ?},
  author={Dr. Premalata Shenbagaraman},
  year={2003}
}
  • Dr. Premalata Shenbagaraman
  • Published 2003
The objective of this study is to assess the impact of introducing index futures and options contracts on the volatility of the underlying stock index in India. Numerous studies on the effects of futures and options listing on the underlying cash market volatility have been done in the developed markets. The empirical evidence is mixed and most suggest that the introduction of derivatives do not destabilize the underlying market. The studies also show that the introduction of derivative… CONTINUE READING