(Reuters) -Cboe Global Markets ( CBOE ) reported a higher-than-expected second-quarter profit on Friday, helped by strong growth in options trading as geopolitical tensions and elevated interest rates prompted investors to actively hedge their exposure.

Fears of potential economic shocks from the Russia-Ukraine war and the Middle East conflict have kept investors on edge even as markets rallied strongly this year, boosting the appetite for hedging.

Some are also questioning the sustainability of the rally due to tight monetary policy and the excessive focus on artificial intelligence-linked stocks.

Those worried about an eventual correction are taking advantage of the cheaply priced S&P 500 put options to hedge their portfolios. Put options are bearish bets that let traders sell an asset at a set price in the future.

Excluding one-time costs, the derivatives exchange giant earned $2.15 per share for the three months ended June 30. Analysts on average had expected $2.10 per share, according to LSEG.

Revenue jumped 10% from last year to $513.8 million.

The earnings round out a strong quarter for exchanges, which have seen robust growth in their core business of trading as investors return to the markets, encouraged by hopes of a soft landing for the economy.

Cboe's options trading business fetched 8% higher revenue compared with last year, while futures revenue climbed 19%.

Revenue from North American equities, which includes the stock and exchange-traded products listed in the United States and Canada, also saw an 8% rise in revenue.

Shares of Cboe have gained 4% so far this year, outperforming peer CME Group but far below Nasdaq and NYSE-parent Intercontinental Exchange.