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Traders prep for French election
10 March 2017
Deutsche Bank analysts took a closer look at equity options and synthetics markets this week
Traders are pricing in elevated risk around the French
election, targeting specific dates and country/sector risk
closely linked with France exposure.
That's according to Deutsche Bank analysts who took a closer
look at equity options and synthetics markets this week as
France heads towards its most unpredictable election in
"Equity options are pricing in elevated risk, at times
equivalent in scale to the pre Brexit run-in," wrote
London-based analyst Sandeep Jain.
"But crucially this risk is mostly localised to
sectors, indices and options expiries with the highest France
risk exposure, including banks and peripheral European
"Implied moves are large and concentrated,...
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