In all investment decisions it is important to determine the degree of uncertainty associated with the valuation of a company. We propose an original and robust methodology to company valuation which replaces the traditional point estimate of the conventional Discounted Cash Flow (DCF) with a...

In all investment decisions it is important to determine the degree of uncertainty associated with the valuation of a company. We propose an original and robust methodology to company valuation which replaces the traditional point estimate of the conventional Discounted Cash Flow (DCF) with a...

For the past two decades, derivatives provided the core financial innovation for risk- management and risk-sharing activities. However, in the aftermath of the 2007-2008 crisis, derivatives have started received, partly for good reason, an increasingly bad press. The main purpose of this paper...

By exploiting basic common practice accounting and risk management rules, we propose a simple analytical dynamical model to investigate the effects of micro-prudential changes on macro-prudential outcomes. Specifically, we study the consequence of the introduction of a financial innovation that...

We introduce the formalism of generalized Fourier transforms in the context of risk management. We develop a general framework in which to efficiently compute the most popular risk measures, value-at-risk and expected shortfall (also known as conditional value-at-risk). The only ingredient...