UK election fog prompts surge of FTSE 100 puts

Puts on UK's leading index rose 30% last week, with put/call ratio nearing historical high

The Houses of Parliament
UK election result may spark FTSE fall

Fears that the UK general election on May 7 could usher in weeks of political instability have sparked a sudden surge in negative bets on the FTSE 100. Last week saw £12 billion notional of put options traded on the FTSE - up a third on the previous week, according to UBS's equity derivatives strategy team - nudging the ratio of puts to calls traded on the index towards historical highs.

Current polls suggest neither the Conservative Party - which currently leads a governing coalition with the

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