Psychological barriers are prevalent among various asset classes, and it is important to consider their impact on the prices of derivative securities. This paper demonstrates the potential existence of such barriers on the S&P 500 Index and examines their impact on this index's rate of return...

In an attempt to manage the risk of mismatch between the actual claims and the anticipated claim amounts in motor insurance pool, we introduce a few new concepts of motor loss ratelinked securities such as motor loss rate options and motor loss rate swaps. These hybrid derivatives can transfer...