Wall Street predicts all will be well in the US by Inauguration Day
The US presidential election may not turn out to be a done deal on Nov. 3, but Wall Street thinks the turmoil will be short lived. While traders have upped their bets on a contested election since US president Donald Trump dialed up his skepticism of mail-in ballots and refused to commit to a peaceful transfer of power, derivatives linked to volatility, or swings in US stock prices, show traders expect the election will be resolved by Inauguration Day on Jan. 20. Other derivatives markets, like options linked to the exchange rate between the US dollar and the Japanese yen, also show traders are braced for a delayed result, according to Olivier Korber, a strategist at Société Générale.
