Department of Economics
Departmentof Economics
Photo: UHH/Denstorf
3 May 2022
The options market on Treasury obligations allows investors to hedge their interest rate risk and to wager on which way rates might move. Taken together, all the trades on that market represent a range of perceptions — of risk — about future rates.
https://anderson-review.ucla.edu/the-collective-wisdom-of-options-trades-as-interest-rate-predictor/