In this paper, we present a methodology for approximating a correlated multivariate-lognormal process with a recombining or “simple” multivariate-binomial process. The method represents an extension and implementation of previous work by Nelson and Ramaswamy (1990) and Ho, Stapleton and...

The purpose of this research is to describe the Omaha Metro Safety Initiative (OMSI) and assess its deterrent effects. The OMSI, a multi-agency task force, has been carrying out "hot spot" policing practices focused on traffic corridors in high crime areas. The purpose of OMSI operations is to...

This paper assumes that the underlying asset prices are lognormally distributed, and derives necessary and sufficient conditions for the valuation of options using a Blackâ€Scholes type methodology. It is shown that the price of a futuresâ€style, markedâ€toâ€market option is given by...

In a recent paper in this Journal, Stiglitz purports to show that leverage may affect the value of the firm in competitive capital markets if the possibility of bankruptcy and the differential expectations between stock holders and bond holders are admitted. However, Stiglitz argues that...