The intraday distribution of volatility and the value of wildcard options

This study investigates the value of the wildcard option embedded in the American FT‐SE 100 index (SEI) options. Model‐based studies of S&P 100 index options show the embedded wildcard option to have significant value. By contrast, nonparametric tests on SEI options indicate that the wildcard has very little value. The contrasting results arise because U.S. studies observe a high level of volatility during the 15‐minute wildcard period, whereas the 21‐minute wildcard period in London is relatively quiet. The present study highlights the sensitivity of the wildcard value to the intraday distribution of volatility and indicates the difficulty in estimating the wildcard period volatility, since it is itself volatile. © 2000 John Wiley & Sons, Inc. Jrl Fut Mark 20: 307–320, 2000     

Higher Level Skills Training: Meeting the Needs of Small Businesses

In order for businesses to remain competitive it is suggested that across industry there is a requirement for ‘higher and broader’ skills. Universities have an important role to play in satisfying the need for higher level skills training for businesses of all sizes. With respect to small firms, the training and development provided by universities has traditionally been founded upon an educational/large firm model. In order to make significant in-roads into the small firm training market it is argued that universities need to attend more closely to the specific needs of client organisations. One way in which the small firm higher level skills training market can be segmented is in terms of sector. The present study examines the higher level skills training needs of a sample of UK small firms from the perspective of sectoral variations. Differences between firms occupying different sectors were observed in terms of funding of training, responsibility for training and types of higher level skills training undertaken. Attitudes towards universities as training providers were generally favourable with little inter-sectoral variation. It is argued that these findings need to be taken into account if universities are to address the real, as opposed to perceived or presumed, needs of small businesses. A systematic-collaborative model of the customer-supplier relationship for the small firm training market is put forward.     

Pro-market institutions and labor market outcomes: A panel-data analysis of U.S. metropolitan areas

We expand previous U.S. state-level research on the relationship between pro-market institutions and labor market outcomes by examining this relationship at the U.S. metropolitan-area level. Using panel data for 1992–2012 in a fixed-effects model, we investigate the effect of pro-market institutions on the unemployment rate, labor force participation rate, employment-population ratio, and employment growth across 366 U.S. metropolitan areas. The results indicate that pro-market institutions are associated with a lower unemployment rate, higher employment-population ratio, and faster employment growth. These results suggest that local-area policies are important for achieving favorable labor market conditions at the local level.