What Do Index Options Teach Us About COVID-19?

dc.contributor.authorJackwerth, Jens
dc.date.accessioned2021-04-30T07:41:57Z
dc.date.available2021-04-30T07:41:57Z
dc.date.issued2020eng
dc.description.abstractRisk-neutral distributions of the S&P 500 are informative about the COVID-19 pandemic beyond what one can learn from index values and the market fear gauge of the VIX alone. We learn that, on February 20, 2020, the index did not yet reflect the impending crisis. Only on March 16, 2020, was the full impact visible, with a pronounced bimodality for longer-maturity options revealing a sizeable crash scenario. The corresponding physical distribution is more symmetric and features a high-volatility crash scenario. Firms bought crash protection ahead of the index crash, whereas retail customers bought it as the index was already recovering.eng
dc.description.versionpublishedeng
dc.identifier.doi10.1093/rapstu/raaa012eng
dc.identifier.urihttps://kops.uni-konstanz.de/handle/123456789/53551
dc.language.isoengeng
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dc.titleWhat Do Index Options Teach Us About COVID-19?eng
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@article{Jackwerth2020Index-53551,
  year={2020},
  doi={10.1093/rapstu/raaa012},
  title={What Do Index Options Teach Us About COVID-19?},
  number={4},
  volume={10},
  issn={2045-9920},
  journal={The Review of Asset Pricing Studies},
  pages={618--634},
  author={Jackwerth, Jens}
}
kops.citation.iso690JACKWERTH, Jens, 2020. What Do Index Options Teach Us About COVID-19?. In: The Review of Asset Pricing Studies. Oxford University Press. 2020, 10(4), pp. 618-634. ISSN 2045-9920. eISSN 2045-9939. Available under: doi: 10.1093/rapstu/raaa012deu
kops.citation.iso690JACKWERTH, Jens, 2020. What Do Index Options Teach Us About COVID-19?. In: The Review of Asset Pricing Studies. Oxford University Press. 2020, 10(4), pp. 618-634. ISSN 2045-9920. eISSN 2045-9939. Available under: doi: 10.1093/rapstu/raaa012eng
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kops.sourcefieldThe Review of Asset Pricing Studies. Oxford University Press. 2020, <b>10</b>(4), pp. 618-634. ISSN 2045-9920. eISSN 2045-9939. Available under: doi: 10.1093/rapstu/raaa012deu
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kops.sourcefield.plainThe Review of Asset Pricing Studies. Oxford University Press. 2020, 10(4), pp. 618-634. ISSN 2045-9920. eISSN 2045-9939. Available under: doi: 10.1093/rapstu/raaa012eng
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