Most existing digital wallet implementations support a single or a limited set of proprietary financial instruments and protocols for electronic commerce transactions, preventing a user from having one consolidated digital wallet to manage all of his or her financial instruments. Commercial efforts to implement extensible digital wallets that are capable of inter-operating with multiple instrum...

This paper proposes a theory of financial intermediation as a form of cognition. It shows that each of the important elements of financial intermediation performs a cognitive role. This includes foundational instruments such as money and institutions such as banks. By demonstrating the cognitive work it performs, this theory also offers a new explanation for emergent financial phenomena, such a...

Purpose: This article aims to analyze the degree of disclosure information on Derivative instruments Emission Allowances, analyzing compliance with underlying accounting regulations, and their determinants factors. Theoretical framework: With evolution European Union Trading System (EU ETS), which foresees that emission licenses will no longer be allocated free charge negotiated at auction, it ...

Using the language of convex analysis we describe key results in several important areas of finance: portfolio theory, financial derivative trading and pricing and consumption based asset pricing theory. We hope to emphasize the importance of convex analysis in financial mathematics and also bring attention to researchers in convex analysis interesting issues in financial applications.

In this paper we give a brief, elementary introduction to various aspects of financial engineering. Specific topics discussed include the determination of a fair price for an option or other derivative instrument, hedging strategies, etc. We also discuss what role, if any, financial engineering has played in the current financial crisis.

One of the most widely used (and most successful) methods for pricing financial and insurance instruments under risk is the Wang transform method. In this paper, we provide a new explanation for the empirical success of Wang’s method – by providing a new simpler justification for the Wang transform. Pricing under risk: a problem. The price of most financial instruments unpredictably (randomly) ...

It has been argued that pension funds should have limitations on their asset allocation, based on the risk profile of the different financial instruments available on the financial markets. This issue proves to be highly relevant at times of market crisis, when a regulation establishing limits to risk taking for pension funds could prevent defaults. In this paper we present a framework for eval...

Finance theory suggests that information risk―that is, the uncertainty regarding valuation parameters for an underlying asset―is reflected in firms’ equity betas and the information asymmetry component of bid-ask spreads. We empirically examine these predictions for a sample of large U.S. banks, exploiting recent mandatory disclosures of financial instruments designated as fair value level 1, 2...