Stock responses



Equity markets have recently allowed derivatives desks little pause for thought. Global stocks toppled quickly in the days following the bankruptcy of Lehman Brothers. From September 12 to September 17, closing day prices on the S&P 500 and Dow Jones Eurostoxx 50 indexes dropped by 7.6% and 7.9%, respectively. The markets plunged again on September 29, after the US Congress voted against a $700 billion rescue fund proposed by the US Treasury, with the S&P 500 falling 8.78% in a day to close at 1

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