Abstract: In this paper we consider a parabolic variational inequality arising from the valuation of European installment put options. We prove the existence and uniqueness of the solution to the problem. Moreover, we obtain C∞ regularity and the bounds of the free boundary. Eventually we show its numerical result by the binomial method.

This is the second of a two-part series on the use of medication during pregnancy and lactation. Pregnancy risk factors together with an increased incidence of chronic diseases and the rise in mean maternal age predict an increase in medication use during gestation. However, as highlighted in the first installment of this series, relatively few medications have specifically been tested for safe...

The 125th anniversary of the birth of the Indian mathematical genius Srinivasa Ramanujan falls on December 22, 2012. To mark this occasion, the Notices offers the following feature article, which appears in two installments. The article contains an introductory piece describing various major developments in the world of Ramanujan since his centennial in 1987, followed by seven pieces describing...

different areas of modern financial tools and processes activities contain the matters like innovations in financial tools engineering and risk management. derivatives and especially stock exchange option is part of this innovation. among all numerical procedures in calculating the value of derivatives and the risk sensitivity parameters of option, binomial models are widely used. in this stud...