IDEAS home Printed from https://ideas.repec.org/a/cup/jfinqa/v10y1975i04p535-535_01.html
   My bibliography  Save this article

Abstract–Volume and Efficiency of Speculative Markets

Author

Listed:
  • Abrahamson, Allen A.
  • Emery, John T.

Abstract

A major benefit of efficient markets is that observed market prices can be assumed to provide an accurate reflection of underlying intrinsic values. For a market to be efficient, however, sufficient numbers of market participants must engage in trading activity to ensure that observed prices are representative of the true but unobserved equilibrium price. Even though the pricing mechanism may impound the effect of all available information, the market price may be biased from the equilibrium price if the market is thin. This paper uses the price behavior of standardized call options traded on the Chicago Board Options Exchange to examine the relation between volume and inside efficiency.

Suggested Citation

  • Abrahamson, Allen A. & Emery, John T., 1975. "Abstract–Volume and Efficiency of Speculative Markets," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 10(4), pages 535-535, November.
    • Handle: RePEc:cup:jfinqa:v:10:y:1975:i:04:p:535-535_01
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0022109000018470/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jfinqa:v:10:y:1975:i:04:p:535-535_01. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/jfq .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.