Is the Options Market in Romania an Option for Investors?

Ghi?ã-Mitrescu Silvia ()
Additional contact information
Ghi?ã-Mitrescu Silvia: Ovidius University of Constanta, Faculty of Economic Sciences

Ovidius University Annals, Economic Sciences Series, 2012, vol. XII, issue 2, 1141-1144

Abstract: The second segment of the derivatives market in Romania, the options contracts has always been the "poor relative" of the futures market. This paper aims to analyze the main features of the options market in Romania in an attempt to determine the necessity and opportunity for its existence in the Romanian capital market landscape. After analyzing the volume, value and the typology of the options contracts traded at Sibiu Stock Exchange in the last decade, we can conclude that we are facing a watershed moment for the options market, the dramatic decrease in the number of contracts traded putting into question the future existence of the market. Although in terms of the types of contracts traded, investors have real alternatives for hedging and speculation, they seem to bypass the options segment and preferred the futures contracts. The explanation for this behavior consists, in our opinion, both in the illiquidity of the market and the lack of financial culture and experience of the investor.

Keywords: options contracts; Sibex; volume of trades; market liqudity (search for similar items in EconPapers)
JEL-codes: G23 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
http://stec.univ-ovidius.ro/html/anale/ENG/cuprins%20rezumate/volum2012p2v2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xii:y:2012:i:2:p:1141-1144

Access Statistics for this article

Ovidius University Annals, Economic Sciences Series is currently edited by Spatariu Cerasela

More articles in Ovidius University Annals, Economic Sciences Series from Ovidius University of Constantza, Faculty of Economic Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Gheorghiu Gabriela ().