Continuously Paying Options (CPOs) form a very natural class of derivatives for hedging risks coming from adverse movements of a continuously traded asset. We study the rate of convergence of CPOs evaluated under the binomial tree scheme when the payout function φ is piecewise C subject to some boundedness conditions. We show that if φ is continuous, the rate of convergence is n−1 while it is n...

Many firms in the biotechnology industry have significant valuations despite having no product revenue because their products are in early stages of development. In the past ten to fifteen years investors have bid up the stock prices of firms showing promise of developing a blockbuster drug. Using the decision-tree and binomial-lattice methods we compare the value of a biotechnology firm to the...

the multi-criteria decision making model is an important tool for decision making in water resource management. in this paper, the topsis model was used to rank seven flood management options in the gorganrood river flood management project, including conservation of natural condition, golestan reservoir management, levee construction, diversions-channel construction, flood forecasting and warn...

this paper investigates the connection between market valuation anda type of the merger (stock, cash) using real options setup. i solveexplicitly for the timing and terms of cash mergers in two deferent settingsto demonstrate that cash mergers generally occur at low marketvaluations, whereas stock mergers that may be observed at both low andhigh valuations; the result holds with some dierences...

keratoconus is a non-inflammatory, progressive thinning process of the cornea. it is a relatively common disorder of unknown etiology that can involve each layer of the cornea and often leads to high myopia and astigmatism. computer- assisted corneal topography devices are valuable diagnostic tools for the diagnosis of subclinical keratoconus and for tracking the progression of the disease. the...

the genus ebola virus first was recognized in 1976, when two outbreaks occurred in zaire and sudan. ebola virus disease (evd) is a highly contagious disease that can affect both human and nonhuman primates: zaire ebolavirus (zebov), sudan ebolavirus (sebov), côte d’ivoire ebolavirus (cebov), bundibugyo ebolavirus (bebov) and reston ebolavirus (rebov) are five members of the filoviridae family t...