Over the last decades the financial markets worldwide underwent tremendous changes, which gave birth to an infinite number of new financial products. Derivatives are the most important innovation with regard to volume that are currently issued on many different underlyings, thus enabling investors to easily buy or sell many different financial products or commodities. This work takes the different aspects of derivatives into account and, after explaining the theoretical background, presents three possible applications for derivatives. First, technical trading methods are applied to intraday futures data, a method which has gained great importance during the last few years. In the next section, a pricing model is developed for profit participation certificates by means of a structural form model. Later, this model is used to price several profit participation certificates traded at the EUWAX in Stuttgart. In the last part, an event study methodology is applied by using implied volatilities to test the influence of a change in a firm's leverage on its risk, as measured by the volatility implied in option prices.
The subject of numerical methods in finance has recently emerged as a new discipline at the intersection of probability theory, finance, and numerical analysis. The methods employed bridge the gap between financial theory and computational practice, and provide solutions for complex problems that are difficult to solve by traditional analytical methods. Although numerical methods in finance have been studied intensively in recent years, many theoretical and practical financial aspects have yet to be explored. This volume presents current research and survey articles focusing on various numerical methods in finance. The book is designed for the academic community and will also serve professional investors.
This book presents solutions for many practical problems in quantitative finance. The e-book design of the text connects theory and computational tools in an innovative way. All "quantlets" for calculation of examples in the text are executable on an XploRe Quantlet Server (XQS) and can be modified by the reader via the internet. The electronic edition can be downloaded from the web.
A state of the art presentation of the tools and concepts of multivariate data analysis with a strong focus on applications. The first part is devoted to graphical techniques describing the distributions of the involved variables. The second part deals with multivariate random variables and presents distributions, estimators and tests for various practical situations. The last part covers mulivariate techniques and introduces the reader into the wide variety of tools for multivariate data analysis. The text presents a wide range of examples and 228 exercises.
This volume looks at the temporal and volatile ways in which Frankfurt and Tel Aviv engage the global economy and function as nodes within global networks. Drawing on a combination of qualitative and quantitative empirical studies of leading sectors, it systematically analyzes the process of network formation and highlights the role of national and regional policy. It will be of interest to academics, researchers, practitioners and policymakers working in urban and economic geography, public policy and economic development.