Investing in Chapter 11 stocks Trading, value, and performance
call options: most of them die out without any payoff, while a few pay off tremendously. ... provides a condition for the stock prices to return to their fundamental values eventually. Thus, the buy-and-hold return from fili ng to resolution becomes negative. Many studies (e.g., Chen, Hong, and Stein, 2002, among others) develop price-optimism ... ................
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