Table 10

OLS REGRESSION RESULTS OF EURODOLLAR PUT FUTURES

OPTIONS PRICING ERRORS ON SELECTED PARAMETERS

Panel A: Training Data Set GANN Results, N = 2000

Equation

a

b M

b t

b u

R2

D = a + b M + e

-8.295E-08

(0.000)

-1.155E-07

(0.000)

    0.000
D = a + b t + e

-2.292E-07

(0.000)

 

2.156E-07

(0.000)

  0.000
D = a + b u + e

-8.312E-07

(-0.001)

   

2.207E-06

(0.0001)

0.000

Panel B: Training Data Set CS OPM Results, N = 2000

D = a + b M + e

8.845E-02

(33.183)

-2.927E-02

(-13.883)

    0.088
D = a + b t + e

5.915E-02

(11.217)

 

3.825E-02

(3.980)

  0.089
D = a + b u + e

-0.141

(-45.059)

   

0.683

(77.258)

0.866

Panel C: HOLDOUT1 GANN Results, N = 6887

D = a + b M + e

-3.068E-04

(-1.120)

2.378E-04

(1.129)

    0.000
D = a + b t + e

7.516E-05

(0.145)

 

-5.897E-04

(-0.627)

  0.000
D = a + b u + e

-4.682E-04

(-0.761)

   

8.275E-04

(0.470)

0.000

Panel D: HOLDOUT1 CS OPM Results, N = 6887

D = a + b M + e

8.352E-02

(61.752)

-2.840E-02

(-27.298)

    0.098
D = a + b t + e

5.359E-02

(19.996)

 

3.756E-02

(7.723)

  0.009
D = a + b u + e

-0.132

(-77.174)

   

0.642

(131.264)

0.714
Note: D = PGANN - P (or neural network put price - market put price) for the panels that relate to GANN and D = PCS - P for the panels that apply to the CS OPM. M = degree of moneyness (F(t) - (100 - K)), t = time to maturity, and u = volatility measure.

The terms a and b are the regression coefficients and e is the error term.

All t-statistics are below their respective coefficients in parentheses.

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