We propose a new methodology for the valuation problem of financial contingent claims when the underlying asset prices follow a general class of continuous Itô processes. Our method can be applicable to a wide range of valuation problems including contingent claims associated with stocks, foreign exchange rates, the term structure of interest rates, and even their combinations. We illustrate ou...

We propose a new definition for tameness within the model of security prices as Itô processes that is risk-aware. We give a new definition for arbitrage and characterize it. We then prove a theorem that can be seen as an extension of the second fundamental theorem of asset pricing, and a theorem for valuation of contingent claims of the American type. The valuation of European contingent claims...

Rapid urbanization and severe air quality deterioration in Pakistan have increased citizens’s concern towards air pollution. This study, conducted in November, 2016, aimed to develop relationship between degraded air quality and resident’s willingness to pay for improved air quality in city of Lahore, Pakistan through contingent valuation method to quantify an individual’s willingness to pay fo...

Contingent valuation of the environment has proven popular amongst environmental economists in recent years and has increased the role of monetary valuation in public policy. However, the underlying economic model of human psychology fails to explain why certain types of stated behaviour are observed. Thus, good scope exists for interdisciplinary research in the area of economics and psychology...

Economic and participatory methods of project appraisal have traditionally been viewed as mutually exclusive alternatives, as they address different decision making criteria. Participatory methods such citizens' juries (or value juries) have been suggested as a means of better coping with some of the problems associated with economic evaluation methods such as contingent valuation. However, par...

Consumer Valuation of the Second Generation of Genetically Modified (GM) Foods with Benefits Disclosure. Jae-Hwan Han and R.Wes Harrison, Louisiana State University. Employing contingent valuation method (CVM), the study explores whether or not consumers’ risk/benefit beliefs and knowledge about GM foods affect their behavior as measured by willingness to pay (WTP) a premium for GM beef with be...