Given the growth of the inverse ETF markets, exchanges have begun to trade options on inverse ETFs, similar to the trading of options on regular ETFs. Since both regular and inverse ETFs on the same index trade the same underlying risk, the pricing of options on regular ETFs and the pricing of...

The foreign currency market in a small open economy, like Israel, plays a major role in fiscal and monetary policy decisions, through its effects on the financial markets and the real economy. In this paper we explore the liquidity and efficiency in three related foreign exchange options markets...