Table 9

WILCOXON SIGNED-RANKS TEST RESULTS OF EURODOLLAR PUT

FUTURES OPTION APPROXIMATION METHODS

Panel A: Training Data Set

   

PGANN vs. Market Price

PGANN vs. PCS

Sample Group

N

Z-value

p-value

Z-value

p-value

Complete

Sample

2000 -0.585 0.559 -33.657 0.000

M* > .01

1202 -1.831 0.067 -24.803 0.000

.01 < M < 1

577 -4.137 0.000 -20.173 0.000

M > 1

619 -1.538 0.124 -12.088 0.000

M < -.01

790 -1.046 0.296 -22.550 0.000

-1 < M < -.01

517 -1.286 0.198 -18.396 0.000

M < -1

271 -0.051 0.959 -12.804 0.000

-.01 < M < .01

8 -1.540 0.123 -1.960 0.025

Panel B: Holdout Data Set, HOLDOUT1

Complete

Sample

6887 -1.337 0.181 -62.100 0.000

M* > .01

4159 -3.931 0.000 -44.783 0.000

.01 < M < 1

1840 -7.946 0.000 -35.372 0.000

M > 1

2312 -2.240 0.025 -23.976 0.000

M < -.01

2698 -1.860 0.063 -42.199 0.000

-1 < M < -.01

1782 -1.919 0.055 -34.696 0.000

M < -1

910 -0.509 0.611 -23.626 0.000

-.01 < M < .01

30 -0.031 0.975 -4.309 0.000
* M is a measure of the degree of moneyness, PGANN and PCS are the Genetic Adaptive Neural Network and Chen & Scott (1993) approximations, respectively. When comparing PGANN to the market price, the p-value is for a 2-tailed test. When comparing PGANN to PCS, the p-value is for a 1-tailed test.

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