Options

Agriculture sector is the single largest contributor to the national income (GDP) contributing nearly 21 percent to the GDP and provides employment to nearly 43 percent of the workforce and supplies raw material to the industrial sector (notably textile industry) of Pakistan. Credit is an important tool for getting the inputs in time increasing thereby the productivity of the farms particularly those of small ones. The current study was designed to investigate the problems faced by the farmers while getting the loan. It was found that the small farmers faced a lot of problems in getting and returning the loan which must be removed to get better results and hence improving the quality and quantity of the agricultural products.

The goal of the paper is to present the intervention strategies used by central banks in order to influence the value of the domestic currency, transparency versus discretion when it comes to publishing data about FX intervention and the cost and effectiveness of intervention. It is rarely that nowadays countries allow for an exchange rate to be formed on the market basis through the effects of supply and demand for foreign exchange on the foreign exchange market. The central bank buys or sells a foreign currency in the foreign exchange market in order to increase or decrease the value of its national currency in comparison to the foreign currency. The reasons for the intervention are the reduction of short-term oscillations of the exchange rate, the impact at the level of foreign exchange reserves, as well as the maintaining the price and financial stability as the ultimate goal of most central banks. The paper will present intervention strategies on foreign exchange market, which involves the implementation of interventions in the market of options, forward, foreign currency repo and foreign currency swaps. Then, on the spot market, interventions using an auction, as well as the application of foreign currency indexed certificates.

This study emphasizes on the mathematical modeling procedure of stock price behavior and option valuation in order to highlight the role and importance of advanced mathematics and subsequently computer software in financial analysis. To this end, following price process modeling and explaining the procedure of option pricing based on it, the resulting model is solved using advanced numerical methods and is executed by MATLAB software. As derivatives pricing models are based on price behavior of underling assets and are subject to change as a result of variation in the behavior of the asset, studying the price behavior of underlying asset is of significant importance. A number of such models (such as Geometric Brownian Motion and jump-diffusion model) are, therefore, analyzed in this article, and results of their execution based on real data from Tehran Stock Exchange total index are presented by parameter estimation and simulation methods and also by using numerical methods.

Motivated by the seemingly chaotic state of affairs of contemporary world political actions, I describe a possible psychological masses domination strategy called " contradictory stimulation ". Assuming that there is the possibility of a genuine intention on the part of some families and powerful organizations in guiding humanity in the way of their interests, I point through mathematical and computational models that contradictory stimulation can be effective in inducing a subservient mentality in the political citizens. Recognize the existence of artful stratagems of manipulation and " brainwashing " sharpens our critical sense and changes our world view. It is the first step in a reaction that try to ensure individual freedoms, if they are desirable.

We review and apply quasi-Monte Carlo (QMC) and global sensitivity analysis (GSA) techniques to pricing and risk management (Greeks) of representative finan-cial instruments of increasing complexity.1 We compare QMC vs. standard Monte Carlo (MC) results in great detail, using high-dimensional Sobol ’ low-discrepancy sequences, different discretization methods, and specific analyses of convergence, performance, speed-up, stability, and error optimization for finite difference Greeks. We find that our QMC outperforms MC in most cases, including the highest-dimen-sional simulations and Greeks calculations, showing faster and more stable conver-gence to exact or almost exact results. Using GSA, we are able to fully explain our findings in terms of reduced effective dimension of our QMC simulation, allowed in most cases, but not always, by Brownian bridge discretization. We conclude that, beyond pricing, QMC is a very promising technique also for computing risk figures, Greeks in particu...

The response of wheat (Triticum aestivum L.) to different salinity levels of irrigation water under the Mediterranean climatic conditions was investigated in a field study at the experimental station of Cukurova University in Adana, Turkey during the 2001-2002 growing season. Saline waters with electrical conductivity values of 0.5 (fresh water), 3.0, 6.0, 9.0, and 12.0 dS/m were used for irrigation of wheat. The average grain yields ranged from 5940 to 6484 kg /ha in different treatments. Variance analysis of the grain yield data showed that the effect of salinity levels of irrigation water used in the study 2 on grain yields was not significantly different. Average dry-matter yields varied from 1154 to 1349 g/m from the different treatments at harvest time. However, treatments resulted in similar biomass yields. Since wheat was irrigated only twice during the growing season, and significant amount of rainfall received during the wheat growing period, salts added to soil with irrig...

This article presents a close, dialogue-based ethnographic account of a group of contemporary options market makers making a decision about pricing options in Tesla, Inc. Careful attention to their deliberations reveals how the rise of algorithms and automation on financial markets have rendered traders alienated and estranged from the markets they work on for their livelihood. This alienation arises, in part, due to novel cascade effects between futures and underlying equities, which algorithmic and automated trading seems to afford, and which also relate to news events as well as the actions of politicians and prominent business people. Emerging from this alienation, traders produce a critique of how highly automated financial markets allocate capital and how ripe they are for political manipulation.

Potassium-rich volcanic rocks in the Isparta area (SW Turkey) consist mainly of older (Pliocene) volcanic rock suites (e.g., lamprophyre, basaltic trachyandesite, trachyandesite, trachyte) and younger (Quaternary) caldera forming lava dome/flows (e.g., tephriphonolite, trachyte) and pyroclastics (ash/pumice fall deposits and ignimbritic flows). The magnetic susceptibility (K) was performed for both groups. The magnetic susceptibility value of the less evolved rocks characterized by SiO2 < 57 wt% (e.g., basaltic trachyandesite, tephriphonolite, lamprophyric rocks) and having mostly mafic phenocrysts such as pyroxene, amphibole, and biotite-phlogopite is over 10 (10−3 [SI]). Fine to medium-grained and subhedral to anhedral opaque minerals are scattered especially in the matrix phase of the less evolved volcanic rocks. However, the K value of the more evolved rocks (e.g., trachyte and trachyandesites) with SiO2 over 57 wt% vary between 0.1 and 28, but most of them below 10. SI values are negatively correlated with SiO2, Na2O, but positively correlated with Fe2O3, CaO, MnO, P2O5 and MgO contents, suggesting inverse variation of SI with fractionation of potassic magma. That is to say that less evolved volcanic rocks have relatively higher magnetic susceptibility values in the volcanic suite. Fine to medium-grained and subhedral to anhedral Fe-Ti oxides are scattered mainly in the matrix phase of the less evolved volcanics, presumably cause the pronounced relatively higher magnetic susceptibility.

ABSTRACT We discuss the probabilistic representation of the solutions of the heat equation perturbed by a repulsive point interaction in terms of a perturbation of Brownian motion, via a Feynman-Kac formula involving a local time functional. An application to option pricing is given, interpolating between the extreme cases of classical Black-Scholes options and knock-outs having the barrier situated exactly at the exercise price.

In this article, we draw on the literature on political property rights, political accountability, and strategic management and entrepreneurship to propose a cost neutral reform aimed at promoting long-run economic prosperity. We propose replacing politicians’ defined benefit pensions with a financial contract that is tied to economic performance. In particular, we propose a contract that pays out a lump sum to a politician 30 years after their election if real gross domestic product per capita is above some preset benchmark. Furthermore, we show that the contract can be priced such that it is cost neutral in terms of present value with a defined-benefit pension. We argue that this contract provides a net benefit to society.

We introduce an innovative market-based mechanism that may be used to advance environmental goals. Our mechanism employs option theory to give established businesses a financial stake in the success of green technologies. We show why and how green companies should be given an option to transfer a block of their shares to any corporation of their choice, incentivize them to switch to environmentally friendly technologies and to use their political clout to alleviate legal, regulatory and political barriers to the adoption of such technologies. In short, giving established corporations a stake in green companies will give them a stake in the environment. Specifically, we propose enacting legislation that will empower green companies that meet certain conditions to transfer a call option to buy a block of its shares to an established company of their choice. The option will be given for free; the established company that receives the option will not have to pay anything for it initially. The exercise price will be the price of the green company’s share at the time of the transfer and the receiving company will have a period of five years to exercise. We call this mechanism the “environmental option.” From a legal standpoint, the mechanism we propose is not unprecedented, so our proposed scheme is not overtly intrusive, nor should it be very controversial. Furthermore, we believe that this risk is worth taking given the proposal’s potential upside

Black-Scholes option pricing model is used to decide theoretical price of different Options contracts in many stock markets in the world. In literature we can ind many generalizations of BS model by modifying some assumptions of classical BS model. In this paper we compared two such modi ied Black-Scholes models with classical Black-Scholes model only for Indian option contracts. We have selected stock options form 5 different sectors of Indian stock How to cite this article (APA): Chauhan, A., & Gor, R. (2021). Comparison of three option pricing models for indian options market .

The dynamic format of the upstream oil and gas organizations, their resources, petroleum assets and market has created a huge gap and uncertainty in the entire upstream business ecosystem; resulting in challenges, opportunities and threats. These opportunities and threats exist both in the internal and external upstream business environment. Much focus by the upstream firms on strategic resource management and internal performance have made them to neglect uncertainty in the external environment causing them to build undiversified capabilities that cannot match strategic investment options in this modern era of crude oil price volatility, gas/energy options and heavy oil demand. The concept of dynamic capabilities has been utilized in various degrees by upstream and high tech firms to respond to a dynamic business environment by sensing, seizing and capturing opportunities and transforming resources. This article extends the dimension of this concept to include shorten time between sensing opportunities and transforming resources which entails optionality. In as much as many scholars have elaborated on the functions of dynamic capabilities, they have channeled little or no focus on strategic options and time to gain entrant to this options as a form of dynamic capabilities. This article therefore describes how upstream firms through optionality and strategic fit can capture valuable investment options with ease and in time, diversify and transform resources with agile flexibility and align both together; thereby enabling time value, evolutional fitness, organizational balance and environmental stability.

In this paper, we revisit the design of interest free house finance. First, we discuss the current practice in conventional banking and Islamic banking. Then, we discuss an alternate design for interest free house finance. The proposal we present attempts to analyze the implication of using market based rent setting in place of using an interest rate benchmark. In the alternate design, the Islamic bank buys the house by paying the house owner full amount of the house upfront. Then, the bank gives the house on rent to the client and the Islamic bank also enters into an options contract as the call option writer. If the call buyer does not exercise the call option, the options contract expires and the Islamic bank is in a position to give the house on rent again. We present numerical examples of computing rents in two separate structures. In structure I, call option is used with the lease contract. In structure II, house is resold at market price with stated price floor.

Soil Moisture is recognized as the key variable in the distributed hydrologic models for operational purpose as for flash flood forecast system as well as for irrigation management. Respect to this role it is most of the time confined to an internal numerical model variable often without any control with measured data. This is mainly due to its intrinsic space and time variability and to the well known difficulties in assessing its value from remote sensing as from in situ measurements. The present work investigates the potentiality to control surface soil moisture and its spatial and temporal variability through the detection of land surface temperature (LST) from satellite remote sensing due to the simpler information and availability of the infrared satellite images respect to the microwave ones and through the distributed hydrological model (FEST-EWB). LST retrieved from satellite images and field data from an eddy tower are used for the validation of the distributed hydrological model as a complementary method to the traditional calibration with discharge measurements. The link between the soil moisture and the land surface temperature is investigated through the FEST-EWB model which considers the energy balance. LST analysis is done for test areas with different spatial scale where there are operative measurement activities and hydrologic modelling, in order to compare LST data from remote sensing, modelling simulation and ground measurements. At basin scale the Po river basin at Ponte della Becca is considered, while at local scale the experimental fields of Moscazzano and Landriano (Italy). The radiometric analysis is be done for thermal infrared data from different operative satellites (MODIS, AVHRR, METEOSAT) with particular attention on LST retrieval for heterogeneous area.

... A. Khedim*, HE Khelifi*, M. Nabi**, K. Hadj-Omar**, M. Mefti***, S. Maouche*, D. Bellague****, M. M&#x27;Hammedi Bouzina***** M. Laouar ... Madna, Algérie *****Université de Chlef/INRAA, Mehdi Boualem, BP 37 Baraki, Algérie *****Université de Sétif/INRAA, 12 rue Khaled el Bachir ...

The financial derivatives are financial instruments, that are recently created, and whose main application is to be used as a tool for managing financial derivatives. The most significant financial derivatives are options, that are mostly used for their flexible and non-standard character. Options, and the other financial derivatives, as well, are instruments that are derived from some other financial instruments, that makes them more complicated from one hand, and more risky, from the other hand. Their role is very important for the developing the financial system, and generating economic growth. The subject of research in this paper is the options as a unstandardized financial derivatives, and their basic characteristics and usage in developed, and developing countries. The prime goal is to research the importance of these derivatives in developing countries, with basic focus in the Republic of Macedonia. The results from these paper should suggest if the options are crutial for the developing the Macedonian financial markets.

Since the 1990s, English universities have adopted various modes to raise finance to fund their expansion plans. Public, Private and Private Finance Initiatives (PFI) were the three modes adopted by English universities to raise funds via bonds. Greenwich University issued public bonds in 1998. After a long interval, Cambridge University issued public bonds worth £350 million in 2012. Moody’s Investor Service gave an AAA debt rating to Cambridge University’s bond issue with due maturity in 2052 with a 3.75% coupon rate. According to industry analysts, the AAA rating denoted the strong market position of Cambridge University with considerable liquid assets, stable revenues and strong governance structure. Cambridge University had planned to use such proceeds for creating accommodation and increase its financial independence. But, industry observers felt that both Lancaster University and Greenwich University had unfavourable experience of issuing public bonds. Meanwhile, ‘The Higher Education Funding Council for England’ had reduced the level of grants given to the universities, which forced them to look out for options for availing funds at a cheaper rate. It remained to be seen whether investors would continue to hold on to their faith on Cambridge University’s repayment capabilities as both Lancaster University and Greenwich University had burnt their figures via issue of public bonds.