Premium to Hedge Against Europe Stock Swings Hits Record: Chart

After two weeks of declines for European shares and just days away from the first round of French presidential elections, investors are sending the cost of protecting against equity fluctuations to a record. One-month implied volatility on the Euro Stoxx 50 Index has surged 46 percent this month, while realized price swings have climbed less than 10 percent. Polls indicate euroskeptic Marine Le Pen and independent Emmanuel Macron will win the first round of voting on April 23, with Macron defeating the National Front leader on May 7.

— With assistance by Luke Kawa, and Sid Verma

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