In general, there exist many ways to detect the fair value of financial derivatives. However, each of them is suitable for different purposes. For example, when the payoff function is not very simple or the underlying process is too complex, the approach of Monte Carlo simulation can be useful....

This paper examines how uncertainty regarding future mortality and life expectancy outcomes, i.e. longevity risk, affects employer-provided defined benefit (DB) private pension plans liabilities. The paper argues that to assess uncertainty and associated risks adequately, a stochastic approach...

The Navier–Stokes transport coefficients of a granular gas are obtained from the Chapman–Enskog solution to the Boltzmann equation. The granular gas is heated by the action of an external driving force (thermostat) which does work to compensate for the collisional loss of energy. Two types...

Microscopic simulations of plane Poiseuille flow for a dilute gas are presented. Although the flow is laminar (Reynolds number ≈10) and sub-sonic, the temperature and pressure profiles measured in the simulations differ qualitatively from the hydrodynamic predictions. The results are in...