Interest rate swaps are an actively traded product in the financial marketplace and are popular for hedging mortgage and corporate loan exposures against rises in interest rates. Asset swaps on the other hand provide a form of asset financing, where investors borrow funds to purchase an asset,...

This paper reconsiders the predictions of the standard option pricing models in the context of incomplete markets. We relax the completeness assumption of the Black-Scholes (1973) model and as an immediate consequence we can no longer construct a replicating portfolio to price the option....

This paper reconsiders the predictions of the standard option pricing models in the context of incomplete markets. We relax the completeness assumption of the Black-Scholes (1973) model and as an immediate consequence we can no longer construct a replicating portfolio to price the option....

In this short paper we outline the Newton-Raphson methods used for solving and minimizing complex equations that often have no analytical solution. We outline the formulae, their origins and give a simple example of their application

The current paper explores the cutting-edge applications of quantum field theory and quantum information theory modelling in different areas of economic science, namely, in the behavioural modelling of agents under market uncertainty, and mathematical modelling of asset or option prices and firm...

This paper examines the investment strategies of compliance companies in irreversible abatement technologies and the environmental achievements of the system in an inter-temporal cap-and-trade market using laboratory experiments. The experimental analysis is performed under varying market...

Interest rate instruments are typically priced by creating a non-arbitrage replicating portfolio in a risk-neutral framework. Bespoke instruments with timing, quanto and other adjustments often present arbitrage opportunities, particularly in complete markets where the difference can be...

Purpose - The paper aims to propose a practical model for market segment selection and evaluation. The paper carries out a technique of order preference similarity to the ideal solution (TOPSIS) approach to make an operation systematic dealing with multi-criteria decision- making problem....