Counterparty credit risk (CCR) is a fundamental issue in the modern financial markets. CCR attempts to capture the impact of the potential losses due to the default (e.g. bankruptcy) of the counterparty in a financial operation. The most used quantitative measure of CCR is the Credit Valuation...

The object of this study was to investigate some implications of the tenets of behavioral finance on the pricing of financial derivatives. In particular, based on the work by Wolff, et al (2009) we have investigated how prospect theory (Kahneman and Tversky, 1979) can be intregrated into the...

The object of this study was to investigate some implications of the tenets of behavioral finance on the pricing of financial derivatives. In particular, based on the work by Wolff et al (2009) we have investigated how prospect theory (Kahneman and Tversky, 1979) can be intregrated into the...