search query: @author Neal, R. / total: 3
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| Author: | Neal, R. |
| Title: | Potential competition and actual competition in equity options. |
| Journal: | Journal of Finance
1987 : JUL, VOL. 42:3, p. 511-531 |
| Index terms: | STOCK OPTIONS INVESTMENT COMPETITION |
| Language: | eng |
| Abstract: | An examination of the economic effects of allocation plan -that is the process by which exclusive franchise on a particular option are granted- is presented. Specifically, the bid ask spread is compared for those options governed by the allocation plan -single listed options- with those that can be traded on more than one exchange -multiple listed options. A model of bid ask spreads is developed to examine the costs of transacting in options. It is shown that options eligible for multiple listing have significantly lower spreads despite having virtually all their volume on a single exchange. |
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