Chen, YWYWChenSHENG-SYAN CHENChou, RKRKChou2023-05-162023-05-1620200022-1090https://scholars.lib.ntu.edu.tw/handle/123456789/631084We examine the effects of a temporary suspension of short-sale price tests on the options market. Consistent with the notion that put option trading substitutes for short selling, we find a significant reduction in put option volume. In addition, pressure on put option prices significantly declines, violations of the put-call parity become significantly less frequent, and option volume becomes less informed. Our findings add clarity to a long-standing debate on whether investors use options to circumvent equity short-selling restrictions.enANALYTIC APPROXIMATION; STOCK; AMERICAN; RETURNS; VOLUME; RESTRICTIONS; UNCERTAINTY; MARKETS; PRICES; RISKjournal article10.1017/S002210901900053X2-s2.0-85070723731WOS:000545539300005https://api.elsevier.com/content/abstract/scopus_id/85070723731