The fourth workshop of the European Science Foundation Network in Financial Markets, on `Options and Futures', was held in Madrid on 26/27 October. The workshop was organized by Colin Mayer, Co- Director of CEPR's Applied Microeconomics programme and Chairman of the Network. Financial support and hospitality were provided by the Banco de España. A full report of the workshop appears in issue no. 3 of the Newsletter of the Network in Financial Markets, which is available from Wendy Thompson at CEPR. The following papers were presented:
`Option Mispricing, Insider Trading, and Interdealer Competition', by Bruno Biais (HEC, Jouy-en-Josas) and Pierre Hillion (INSEAD)
`A Theory of Manipulation in Derivative Markets', by Joan Kletterer (Mercado de Futuros Financieros, Madrid)
`Option Bounds in Discrete Time with Transaction Costs', by Phelim Boyle (University of Waterloo, Ontario) and Ton Vorst (Erasmus Universiteit Rotterdam)
`Valuation of Warrants: Theory and Empirical Tests for Warrants Written on German Stocks' by G Uwe Schulz and Siegfried Trautmann (Universität Stuttgart)
`Futures, Forward and Option Prices in a No-Arbitrage Economy' by Steve Satchell (Trinity College, Cambridge), Richard Stapleton (University of Lancaster) and Marti Subrahmanyan (New York University)
`Futures/Cash Arbitrage with Early Unwinding Opportunities and Inelastic Liquidity Demand', by Ian Cooper (London Business School) and Antonio Mello (MIT)
`Financial Instruments for Smoothing the Consumption of Primary Commodity Exporters', by Brian Wright (University of California, Berkeley), Kenneth Kletzer (Yale University) and David Newbery (Department of Applied Economics, Cambridge, and CEPR)
`Cartel Behaviour and Futures Trading' by Ronald Anderson and Tiziano Brianza (Université Catholique de Louvain)