Valuing trees for aesthetics

Valuing Real Options using Implied Binomial Trees

A real option on a commodity is valued using an implied binomial tree (IBT) calibrated using commodity futures options prices. Estimating an IBT in the absence of spot options (the norm for commodities) allows real option models to be calibrated for the first time to market-implied probability distributions for commodity prices. Also, the existence of long-dated futures options means that good ...

Engineering Aesthetics and Ergo-Aesthetics:

Human factors researchers and practitioners have been focusing research attention on the easeof-use, productivity, safety, comfort, and effectiveness aspects of product and system design. This article argues that it is time that we add another important dimension to the fields of human factors research and practice—the aesthetic dimension. This article discusses the need for the establishment o...

Darwinian Aesthetics Informs Traditional Aesthetics

facial aesthetics for males

New Methodologies for Valuing Derivatives

High-dimensional integrals are usually solved with Monte Carlo algorithms although theory suggests that low discrepancy algorithms are sometimes superior. We report on numerical testing which compares low discrepancy and Monte Carlo algorithms on the evaluation of nancial derivatives. The testing is performed on a Collateralized Mortgage Obligation (CMO) which is formulated as the computation o...