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how market makers hedge binary option

American Journal of Sociology

journal commodity

Amalgam a Market, Performing Theory: The Historical Sociology of a Fiscal Derivatives Substitution

American Periodical of Folklore

Published By: The University of Chicago Press

American Journal of Sociology

https://doi.org/10.1086/374404

https://www. jstor .org/stable/10.1086/374404

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Abstract

This analysis of the history of the Chicago Lath Options Exchange explores the performativity of economics, a theme in economical sociology recently adult by Callon. Economics was crucial to the cosmos of fiscal derivatives exchanges: it helped remedy the drastic loss of legitimacy suffered by derivatives in the first half of the 20th century. Option pricing theory—a "crown jewel" of neoclassical economics—succeeded empirically not because it discovered preexisting toll patterns but because markets changed in ways that made its assumptions more accurate and because the theory was used in arbitrage. The performativity of economics, however, has limits, and an accent on information technology needs to exist combined with classic themes in economic sociology, such as Granovetterian embedding and the way in which exchanges tin be cultures and moral communities in which commonage action problems can be solved.

Journal Information

Current issues are at present on the Chicago Journals website. Read the latest issue.Established in 1895 as the first US scholarly journal in its field, the American Periodical of Sociology (AJS) presents pathbreaking work from all areas of sociology, with an emphasis on theory building and innovative methods. AJS strives to speak to the general sociology reader and is open to contributions from across the social sciences—political scientific discipline, economics, history, anthropology, and statistics in addition to sociology—that seriously appoint the sociological literature to forge new ways of agreement the social. AJS offers a substantial volume review section that identifies the most salient work of both emerging and enduring scholars of social science. Commissioned review essays announced occasionally, offering the readers a comparative, in-depth exam of prominent titles.

Publisher Information

Since its origins in 1890 as one of the 3 principal divisions of the University of Chicago, The University of Chicago Press has embraced as its mission the obligation to disseminate scholarship of the highest standard and to publish serious works that promote teaching, foster public understanding, and enrich cultural life. Today, the Journals Segmentation publishes more than seventy journals and hardcover serials, in a wide range of academic disciplines, including the social sciences, the humanities, teaching, the biological and medical sciences, and the physical sciences.

Source: https://www.jstor.org/stable/10.1086/374404

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