@article {Muck82, author = {Matthias Muck}, title = {Where Should You Buy Your Options? The Pricing of Exchange-Traded Certificates and OTC Derivatives in Germany}, volume = {14}, number = {1}, pages = {82--96}, year = {2006}, doi = {10.3905/jod.2006.650200}, publisher = {Institutional Investor Journals Umbrella}, abstract = {With the expansion of electronic exchanges and the nearly universal access to the Internet, it has become possible for retail investors to buy and sell exchange-traded derivative contracts from their desktops. In Europe this ability has even been extended to allow small investors to purchase over-the-counter exotic option contracts through the Internet. In this article, Muck analyzes the pricing of a variety of web-traded exotic instruments, available in this {\quotedblbase}market.{\textquotedblright} As one would expect, the contracts are overpriced on average, relative to theoretical valuations based on exchange-traded options on the same underlying DAX index. A second hypothesis, that overpricing diminishes as the contracts approach maturity receives a little less support.TOPICS: Interest-rates and currency swaps, options}, issn = {1074-1240}, URL = {https://jod.pm-research.com/content/14/1/82}, eprint = {https://jod.pm-research.com/content/14/1/82.full.pdf}, journal = {The Journal of Derivatives} }