BIGFI/Finance Seminar with Ravi Bansal, Duke University
The Department of Finance is proud to announce the upcoming seminar with Ravi Bansal, Duke University.
Ravi Bansal will present: Identifying preference for early resolution from asset prices
ABSTRACT: This paper develops an asset market based test for preference for the timing of resolution of uncertainty. Our main theorem provides a characterization of preference for early resolution of uncertainty in terms of the risk premium of assets realized during the period when the informativeness of macroeconomic announcements is resolved. Empirically, we find support for preference for early resolution of uncertainty based on evidence on the dynamics of the implied volatility of S&P 500 index options before FOMC announcements.
Location:
Solbjerg Plads 3
2000 Frederiksberg
Room: SPs07