Czech Koruna and Polish Zloty : Spot and Currency Option Volatility Patterns /

Exchange rate flexibility has facilitated an impressively fast insertion of the Czech koruna and the Polish zloty into the global currency market. However, exchange rate volatility patterns differ: Lower volatility is observed for the koruna against the euro relative to the U.S. dollar, while the op...

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Dades bibliogràfiques
Autor principal: Mendez Morales, Armando
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2001.
Col·lecció:IMF Working Papers; Working Paper ; No. 2001/120
Accés en línia:Full text available on IMF
Descripció
Sumari:Exchange rate flexibility has facilitated an impressively fast insertion of the Czech koruna and the Polish zloty into the global currency market. However, exchange rate volatility patterns differ: Lower volatility is observed for the koruna against the euro relative to the U.S. dollar, while the opposite is true for the zloty, apparently related to earlier financial integration of the Czech Republic with Europe and early dollarization in Poland as a result of initial higher inflation rates. By contrast, the currency options market shows enhanced information content of both currencies against the euro reflected in the behavior of their implied volatility.
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Descripció física:1 online resource (30 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students