Template-Type:ReDIF-Paper 1.0  
Title: An Experimental Investigation of the Option Pricing Approach
Author-Name:Abbink, Klaus
Author-Name: Bettina Kuon
Classification-JEL:C91, G12, G14
Keywords:  Experiment, Option Pricing, Arbitrage, Bounded Rationality
Abstract: The Paper reports a basic Experiment on the option pricing approach. Each trader with an increasing utility
	for money values the option with his arbitrage free price, which is independent of the probability of the stock
	movement. The experimental data show that the traiders learn to exploit more arbitrage as they gain experience,
	however, they value the option by aprobability dependent price. This price can best be described by the discounted
	expected payoff of the option, damped for high probability values. Nevertheless, there are hints for learning towards
	the arbitrage free price, driven by the expected payoff maximization.
Length: pages
Creation-Date: 1996-07
Revision-Date: 
Handle: RePEc:bon:bonsfb:376