We quantify the effects of lending and balance sheet channels on corporate investment during large crises in emerging markets. The depreciated currency creates investment opportunities in the tradable sector but firms might be financially constrained due to: 1) a deterioration of their balance sheet via un-hedged foreign currency debt (balance sheet channel) and 2) a decline in the supply of cr...

The Black-Scholes Equation is arguably the most influential financial equation, as it an effective example of how to eliminate risk from a portfolio by using hedged position. Hedged positions are used many firms, mutual funds and finance companies increase value assets over time. derivation equation often considered difficult understand overly complicated, when in reality confusion arises misun...

There seems to be something about probability that offends some people’s (not necessarily Kyburg’s) sense of taste. Not being of this aesthetic persuasion, I can only speculate that assigning degrees of belief to propositions is seen as a cop-out; a true believer should either adopt a proposition or not, eschewing compromise. Those who would reject probability need not deny uncertainty, however...

Hedged PKE schemes are designed to provide useful security when the permessage randomness fails to be uniform, say, due to faulty implementations or adversarial actions. A simple and elegant theoretical approach to building such schemes works like this: Synthesize fresh random bits by hashing all of the encryption inputs, and use the resulting hash output as randomness for an underlying PKE sch...

For index-based hedging design, the scatter plot of the hedging contract losses versus the losses to be hedged is generally used to visualize and quantify basis risk. While studying this scatter plot, which does not cluster along the diagonal as desired, a “bundled loss” phenomenon is found. In a setting where both the hedging and the hedged contracts have 100,000 years of simulated losses, thi...

Impermanent Loss in Decentralized Finance can be hedged with weighted variance swaps

this research study aimed at investigating whether using peer-provided feedbacks rather than teacher-provided comments would result in any significance difference in iranian english undergraduate students’ ability in writing. in so doing, based on a pretest (an opt & a writing exam), 40 subjects were assigned to two homogeneous groups of equal number the subjects in the control group received m...

We present a closed-form ∆-hedging result for a large investor whose trades generate adverse market impact. Unlike in the complete-market case, the agent no longer finds it tenable to be perfectly hedged or even within a fixed distance away from being hedged. Instead, he may find himself arbitrarily mishedged and optimally trades towards the classical Black-Scholes ∆, with trading intensity pro...