The modelling of financial markets as continuous stochastic processes provides the means to analyse the implications of models and to compute prices for a host of financial instruments. We code as a symbolic computing program the analysis, initiated by Black, Scholes and Merton, of the formation of a partial differential equation whose solution is the value of a derivative security, from the sp...

Financial derivatives are financial instruments whose price is derived from the basic instruments' prices. They represent derivative created based on existence of primary instruments, such as shares, bonds, stock market indices, or other forms assets. It precisely benefit using that point to their function. The function refers risk protection and reduction exposure some markets, currencies, cou...

In recent years, with the gradual development of interest rate liberalization, our country gradually entered era low rate. The income all kinds financial products can not meet investors' expectations gradually. And structured as a new product, relies on its structural model by combining basic instruments and derivative instruments, characteristics both fixed securities relatively safe derivativ...

The existence of comprehensive income as the adoption IFRS, which has been carried out in Indonesia since 2012, resulted this figure information one important used by investors. Company policies originating from operating and non-operating activities can affect financial quality. This study deals with effect tax avoidance derivative instruments on value relevance income. Research data is derive...

Senior executives typically delegate the responsibility for managing a firm's derivatives portfolio to in-house financial experts and the company's financial advisers. That's a strategic blunder, argues this Nobel laureate, because the inventiveness of modern financial markets makes it possible for companies to double or even triple their capacity to invest in their strategic assets and compete...

I analyze the effects of bank characteristics and macroeconomic shocks on interest rate riskmanagement behavior of commercial banks. My findings are consistent with hedging theories based on cost of financial distress and costly external financing. Banks with higher probability of financial distress manage their interest rate risk more aggressively, both by means of on-balance sheet and offbala...

With the new risk perception in financial markets, use of derivative instruments has increased. In particular, energy derivatives, which are used to reduce risks associated with price fluctuations, have been widely worldwide and recently Turkey. The objective this paper is contribute limited literature by analyzing evolution base load futures contracts traded Turkish electricity market. Based o...

In recent years, people have begun to pay more and more attention to the effect of news on financial instrument markets (i.e., the markets for trading financial instruments). Researchers in the financial domain have conducted many studies demonstrating the effect of different types of news on trade activities in financial instrument markets such as volatility in trade price, trade volume, tradi...

Why are new financial instruments created? Why are they needed and what purpose do they serve? This paper proposes the view that financial development arises as a response to the contractual needs of emerging technologies. Exogenous technological progress generates a demand for new financial instruments in order to share risk or overcome private information, for example. A model of the dynamics...