We apply utility indifference pricing to solve a contingent claim problem, valuing a connected pair of gas fields where the underlying process is not standard Geometric Brownian motion and the assumption of complete markets is not fulfilled. First, empirical data are often characterized by...

Real option theory has remained a fringe field; practitioners believe it is not practically applicable in complex real world environments. We show that this view is mistaken. We apply real option theory to a highly complex energy problem with unhedgeable risk, time varying volatilities and...

This study examines the relationship between carry trade returns and those of stock markets, using daily data from January 1995 to December 2011, and evaluates volatility spillover for the Japanese, Australian, Indian and Korean stock markets, in order to assess cross-market linkages. We have...

Considering the heterogeneity of individuals’ influence in the real world, we introduce a preferential selection mechanism to evolutionary games (the Prisoner’s Dilemma Game and the Snowdrift Game) on scale-free networks and focus on the cooperative behavior of the system. In every step,...

In this paper, we investigate the cross-correlation properties between West Texas Intermediate crude oil and the stock markets of the BRIC. We use not only the qualitative analysis of the cross-correlation test, but also take the quantitative analysis of the MF-DXA, confirming the...

This paper analyzes the regional differences in dust weather and its relationship with climatic factors and vegetation cover, using data at 27 observation stations in the Beijing-Tianjin Sand Source Region from 1960 to 2007. There was a decreasing trend in dust weather in the southeast, which...