Pricing Green Financial Products

Pricing multi-asset financial products with tail dependence using copulas

Pricing of Financial Derivatives

A financial derivative, for example an option, is an instrument (contract) whose value depends on the values of some underlying variables, where the underlying can be a commodity, an interest rate, stock, a stock index, a currency, to mention just a few examples. The financial derivatives market is enormous and is regularly reported to be worth $500 trillion. Derivatives provide an efficient wa...

Pricing Prototypical Products

Pricing Prototypical Products When we think of colas, Coca-Cola first comes to mind. Products such as Cola-Cola, Tide laundry detergent and Chapstick lip balm are the prototypical products in their respective categories. Over three decades, research in consumer psychology has accumulated evidence on how prototypicality structures memory, shapes the composition of consideration set and influence...

Entropy-Based Financial Asset Pricing

We investigate entropy as a financial risk measure. Entropy explains the equity premium of securities and portfolios in a simpler way and, at the same time, with higher explanatory power than the beta parameter of the capital asset pricing model. For asset pricing we define the continuous entropy as an alternative measure of risk. Our results show that entropy decreases in the function of the n...

Financial Cryptography: Discriminatory Pricing Mechanism

This work presents an adaptive profitable discriminatory pricing mechanism for cloud computing based on secure function decomposition, cryptographic commitments and zero knowledge proof. Cloud computing is an emerging trend of enterprise resource planning where a selling agent or service provider (S) wants to allocate a set of computational resources and related IT services optimally and fairly...