Speculation and Counter-Speculation

Speculation Spillovers Speculation Spillovers

This paper demonstrates that investor irrationality can be contagious across markets. Supplementing existing studies on resale option theory, we illustrate that warrant speculation could spill over to the underlying stock market. Our findings indicate that high turnover of underlying stocks is associated with previous day’s high unexpected turnover of warrants, or previous day’s larger price de...

Food Speculation

Speculation Spillover

This paper demonstrates that investor irrationality can be contagious across markets. Studies addressing the pros and cons of opening derivatives markets have failed to pay sufficient attention to the roles of speculative activities. This paper investigates how trading activities that are unrelated to fundamentals affect the impact of derivatives on stock markets. By using unique data from the ...

Hypoellipticity: Geometrization and Speculation

To any finite collection of smooth real vector fields Xj in R we associate a metric in the phase space T ∗Rn. The relation between the asymptotic behavior of this metric and hypoellipticity of ∑ X j , in the smooth, real analytic, and Gevrey categories, is explored. To Professor P. Lelong, on the occasion of his 85th birthday.

Speculation and destabilisation

In the context of flexible exchange rates, Milton Friedman proposed that speculation must exert a stabilising influence upon prices to remain profitable. This generated a wealth of predominantly theoretical research into the behaviour of speculators, for which the results seem to depend critically upon the assumptions. Such theoretical models need to be tested against empirical evidence to dete...