Guo, Hui; Neely, Christopher J.; Higbee, Jason - Federal Reserve Bank of St. Louis - 2006
, “Business conditions and expected returns on stocks and
bonds,” Journal of Financial Economics 25, 23-49.
Fama, E.F. and K … participants at the 2005 Missouri Economics
Conference and the 2005 FMA annual meeting for helpful suggestions. The views …-the-money call option on foreign
exchange futures, which is usually very liquid.
8
At the end of business day t, our hypothetical …