Most derivative asset pricing models assume that derivative assets themselves are redundant assets which have no impact on the decision making of market investors, but there have been some evidences to deny it according to several studies based on American asset market data.
In this thesis, using inter-temporal MRS we examine the validity of this assumption in the KOSPI 200 market.
The results obtained from both inter-day data and intra-day data analysis indicate that in general we cannot accept it - traditional assumption regarding stock option as a redundant asset with respect to stock.
