We examine the effect of direct mail (commonly referred to as junk mail) advertising on individual financial decisions by studying consumer choice of home equity debt contracts. Consistent with the theoretical predictions, we find that financial variables underlying the relative pricing of debt contracts are the leading factors explaining consumers’ home equity debt choice. Furthermore, we also...

This issue brief contrasts prescription drug access, affordability, and costs in the United States with six other high-income countries, drawing from Commonwealth Fund survey data of patient experiences as well as international spending and pricing data. The analysis reveals that Americans, particularly the relatively young and healthy, are more likely to use prescription drugs than are residen...

An outstanding performance of randomized quasi-Monte Carlo methods for multidimensional integration problems in finance are widely appreciated. Many financial option pricing problems use quasirandom (vector) sequences to generate sample paths of the underlying asset price by summing up the transformed (usually by inverse normal distribution) components of each vector. In this paper we consider ...

The growing share of financial assets that are held and managed by large institutional investors whose trades move prices contradicts the traditional asset pricing paradigm which assumes markets are competitive with small price-taking players. This paper relaxes the traditional price-taking assumption and instead presents a dynamic multi-asset, multi-large participant model of imperfect competi...

In pricing and hedging with financial derivatives, term structure models with jump are particularly important [1], since ignoring jumps in financial prices may cause inaccurate pricing and hedging rates [2]. Solutions of term structure model under jump-diffusion processes are justified because of movements in interest rates displaying both continuous and discontinuous behaviors [3]. Moreover, t...

Economic growth and development of market, stock exchange and related variables are among components which influence on business, economic activities and management of society. Financial repression is among economic variables greatly influencing on financial market specifically capital market and economic growth and development; so that, this concept caused to publish financial growth and devel...

We examine the effect of direct mail (commonly referred to as junk mail) advertising on individual financial decisions by studying consumer choice of home equity debt contracts. Consistent with the theoretical predictions, we find that financial variables underlying the relative pricing of debt contracts are the leading factors explaining consumers’ home equity debt choice. Furthermore, we also...

Traditional project investment methods, such as the discounted cash flow (DCF) with a fixed static plan, are no longer sufficient to assist the corporate strategies of seizing opportunities and profitability. The option pricing formula includes a theoretical framework for pricing financial options, assuming that the risk in a financial hedged position is zero, if the option is adjusted continuo...

One of the best examples of mathematically rigorous signal processing in finance is the Black-Scholes model for price evolution of financial options. To address the same problem, this paper proposes a Takagi-SugenoKang (TSK) fuzzy rule-based option pricing model that requires only a small number of rules to describe highly complex financial signals such as option prices. The findings for this d...

Adaptive wave model for financial option pricing is proposed, as a high-complexity alternative to the standard Black-Scholes model. The new option-pricing model, representing a controlled Brownian motion, includes two wave-type approaches: nonlinear and quantum, both based on (adaptive form of) the Schrödinger equation. The nonlinear approach comes in two flavors: for the case of constant volat...