AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Liquidity Constraints in Commodity Options Market
This chapter discusses the impact of limited liquidity in the options market for commodities and its implications for modeling and research. The speaker explores the challenges of executing trades on underpriced out-of-the-money call options due to wide bid-ask spreads and limited open interest. They also highlight the importance of patience and gradually working trades in low liquidity markets.