Journal of Undergraduate Research
Keywords
American Stock Exchange, AMEX, macro economics, option trading
College
Family, Home, and Social Sciences
Department
Economics
Abstract
Introduction Exchanged-based option trading began on the Chicago Board Options Exchange (CBOE) in 1973. The American Stock Exchange (AMEX) and the Philadelphia Stock Exchange started trading exchange-based options in 1975, and the Pacific Stock Exchange (PSE) and the Midwest Stock Exchange (MSE) in 1976. Exchanged-based option trading has experienced tremendous growth in both the number of options trading and the total trading volume. By 1997 there was over 2,000 underlying stocks with exchange-traded options. In 1980 the number was below 300. In 1996 the trading volume was close to 200 million contracts. This is double the volume of 1980 1. During this time of growth there have been major changes to the market structure. Many theorize that these changes are integral in explaining the growth of the option market.
Recommended Citation
Snow, Karl N. and Diether, Dr. Karl
(2014)
"Stylized Facts of the Option Market,"
Journal of Undergraduate Research: Vol. 2014:
Iss.
1, Article 191.
Available at:
https://scholarsarchive.byu.edu/jur/vol2014/iss1/191