The bright side, from the options market, Trump and trade

Market prices do convey important information about changing risks. For example, option prices suggest that Mexican assets are expected to deliver larger gains than losses, implying Trump won’t seek to impose headline-grabbing sanctions on the country. Although less pronounced, options market indicators are similar for China, Japan and emerging markets.

In short, the options market does not appear to view Trump as a protectionist but rather as someone who understands the value and importance of global trade.

That is from Myron Scholes in the FT.  Here is my earlier dialogue with Bob Zoellick on trade and Trump.

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