Mid-cap emerges

Equity derivatives

pg48-arnaud-jpg

European mid-cap equity derivatives haven't traditionally held much allure for investors. Over the past nine months, however, these instruments have begun to emerge from obscurity. The catalyst was the spike in equity volatility in May and June last year, which exposed the potentially dangerous basis risk of hedging large cash positions in European small- and mid-cap stocks with large-cap options. Keen to hedge their mid-cap exposures more precisely, investors have been piling into the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: