We show that Australian options are equivalent to fixed or floating strike Asian options and consequently that by studying Asian options from the Australian perspective and vice versa, much can be gained. One specific application of this "Australian Approach" leads to a natural dimension...

We consider the classical investment timing problem in a framework where the instantaneous volatility of the project value is itself given by a stochastic process, hence lifting the old question about the investment-uncertainty relationship to a new level. Motivated by the classical cases of...

This paper investigates the use of the asymptotic Heston solution in locally risk minimizing hedging. The asymptotic Heston solution is presented along with issues that are relevant to its use. Comparison between the exact and asymptotic Heston hedges are made using both simulated and real...

We consider Merton's version of the Solow model Merton (1975), where capital per labor is assumed to follow the diffusion process: dk(t)=[sf(k(t))-(n lambda-sigma2)k(t)]dt sigmak(t)dW(t), with constant per capital savings rate s. Merton defined a golden rule in this context as one for which...

An interpretation of the conflict between male and female parents during the process of caring for their common offspring by means of Game Theory was given in Houston and Davies. [A.I. Houston, N.B. Davies, The evolution of cooperation and life history in the dunnock Prunella modularis, in: R.M....

We combine and extend two existing lines of research in game theoretic studies of fisheries. The first line of research is the inclusion of the aspect of predation and the consideration of multi-species fisheries within classical game theoretic models of fisheries and goes back to Quirk and...