The aim of this article is to provide a systematic analysis of the conditions such that Fourier transform valuation formulas are valid in a general framework; i.e. when the option has an arbitrary payoff function and depends on the path of the asset price process. An interplay between the conditions on the payoff function and the process arises naturally. We also extend these results to the mul...

We consider asset price processes Xt which are weak solutions of onedimensional stochastic di erential equations of the form dXt = b(t; Xt) dt + t Xt dWt: Such price models can be interpreted as non{lognormally{distributed generalizations of the geometric Brownian motion. We study properties of the I divergence between the law of the solution Xt and the corresponding drift{less measure (the spe...

This paper examines the application of inferencesupporting ontologies to the issue of knowledge valuation. Knowledge, like customer goodwill or a brand, is an intangible asset for a firm; that is, a non-physical, nonfinancial claim to future wealth. Intangibles are notoriously difficult to value, but there are a number of reasons why we should try. A series of factors affecting the value of kno...

Hybrid methodology involving differential equations modeling and statistical regression is developed in order to test basic ideas in asset price dynamics. In particular, the method provides a mechanism for testing the relative importance of price trend compared with valuation. The significance of yearly highs in prices can also be understood through this procedure. A large data set of 52 closed...

We investigate relations among inside ownership, managerial expenses, risk sharing and equity valuations. Our engine of analysis—Real Estate Investment Trusts (REITs)—provides a unique and rich framework for analysis since we can calculate extremely accurate measures of asset replacement costs, and hence relative valuation (Tobin’s q). Further, the nature of the financial statements allows us t...

As intellectual property (IP) has become an integral part of business strategy, the valuation of these assets has become more and more critical. Consequently, the strategic decisions of Indian SMEs also increasingly depend on understanding the economics affecting the value of these assets and most crucially appraising the approximate value of their IP. In this light, the paper reviews the princ...

The valuation process that economic agents undergo for investments with uncertain payoff typically depends on their statistical views on possible future outcomes, their attitudes toward risk, and, of course, the payoff structure itself. Yields vary across different investment opportunities and their interrelations are difficult to explain. For the same agent, a different discounting factor has ...