Current Issue : October-December Volume : 2023 Issue Number : 4 Articles : 5 Articles
In this paper, a pricing method based on the Fourier-Cosine series expansion is introduced for pricing equity-indexed annuities (EIAs) under the Heston model. By means of the Fourier-Cosine series expansion, the density function of the underlying indexed is recovered from its characteristic function, and then yields an efficient way for EIAs pricing. To show the accuracy of the Fourier-Cosine expansion method, numerical experiments, we provide the numerical results of EIAs price for the classical Black-Scholes model. It is shown that the computation results obtained by the Foueier-Cosine series are as accurate as those obtained by using the Monte Carlo simulation method. The Fourier-Cosine expansion method can be used to obtain the break-even participation rate under the Heston model with or without a cap in simple ratchet EIAs....
International trade is modeled as a multinational cooperative game where Shapley value leads to fair distribution of total trade gains. This fair-trade solution entails side payments among trading nations, essentially international trade adjustment assistance. These Shapley side payments provide balance to the often contentious free-trade solution, which is essentially open-door and hands-off. We develop requisite calculations and illustrate them with a hypothetical four-nation trade game. We conclude that Shapley fair-trade estimates and calculations should be an integral part of any international trade negotiation....
This research paper delves into the competitive landscape of the Georgian beverage industry, where rivalry is strong and cutthroat. The emphasis of this article is mostly on the importance of market orientation and innovation in determining the success of competitive strategies in this sector. Advancing these perspectives is data from the area’s beverage industry, which has seen a surge in development, providing insight towards the obstacles companies experience in keeping up with their competitors. The study employs Structural Equation Modelling (SEM) Smart-PLS with 325 respondents from the beverage industry. By keeping in sight how market orientation and innovation on their own authority yield mediating effects, light can be shed on what matters for a firm to triumph in this demanding industry. The conclusion drawn suggests that companies embracing a realistic market-oriented outlook in their product planning and advertising, combined with centering on novelty, are better placed to stay successful within this fiercely competitive business space....
With the spread of market sentiment of global economic recession, the market favors hedging varieties such as gold and agricultural products. This paper seeks to investigate the explanations of corn futures price movements from the perspective of investor attention. We employ a time series autoregressive model (VAR) to analyze the relationship between them. Empirical results indicate that investor attention is a Granger cause of changes in the corn futures price, generating both linear and nonlinear effects on corn futures price. Furthermore, out-of-sample analysis shows that introducing the Baidu index improves the model’s prediction accuracy....
This study investigates the relationship between market competition and capital structure and the respective role of ESG performance. Using 5112 firm-year observations from firms listed on the Tokyo Stock Exchange between 2002 and 2020, we document a negative relationship between market competition and capital structure. Also, we find that ESG performance moderates this relationship. Our findings support the “deep pocket” theory of predation and emphasize the benefits of a superior ESG performance....
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