TY  - UNPD
A1  - Bosman, Ronald
A1  - Kräussl, Roman
A1  - Galen, Thomas van
T1  - Emotions-at-risk: an experimental investigation into emotions, option prices and risk perception
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 495
N2  - This paper experimentally investigates how emotions are associated with option prices and risk perception. Using a binary lottery, we find evidence that the emotion ‘surprise’ plays a significant role in the negative correlation between lottery returns and estimates of the price of a put option. Our findings shed new light on various existing theories on emotions and affect. We find gratitude, admiration, and joy to be positively associated with risk perception, although the affect heuristic predicts a negative association. In contrast with the predictions of the appraisal tendency framework (ATF), we document a negative correlation between option price and surprise for lottery winners. Finally, the results show that the option price is not associated with risk perception as commonly used in psychology.
T3  - CFS working paper series - 495 
KW  - risk perception
KW  - emotions
KW  - affect heuristic
KW  - option prices
KW  - experiment
Y1  - 2014
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/35609
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-356099
IS  - September 2014
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -