This book presents 20 peer-reviewed chapters on current aspects of derivatives markets and derivative pricing. The contributions, written by leading researchers in the field as well as experienced authors from the financial industry, present the state of the art in: "Modeling counterparty credit...

We consider a two-station tandem queueing system where customers arrive according to a Poisson process and must receive service at both stations before leaving the system. Neither queue is equipped with dedicated servers. Instead, we consider three scenarios for the fluctuations of workforce...

We consider the problem of allocating a single server to a system of queues with Poisson arrivals. Each queue represents a class of jobs and possesses a holding cost rate, general service distribution, and a set-up cost. The objective is to minimize the expected cost due to the waiting of jobs...

The problem considered is sequential estimation of the mean θ of a one-parameter exponential family of distributions with squared error loss for estimation error and a cost c 0 for each of an i.i.d. sequence of potential observations X 1 , X 2 ,...A Bayesian approach is adopted, and natural...