In this paper we study a fundamental issue in the theory of modeling of financial markets. We consider a model where any investment opportunity is described by its cash flows. We allow for a finite number of transactions in a finite time horizon. Each transaction is held at a random moment. This places our model closer to the real world situation than discrete-time or continuous-time models. Mo...

With the rapid growth of Information and Communication Technology, Electronic commerce is now acting as a new means of carrying out business transactions through electronic means such as Internet environment. To avoid the complexities associated with the digital cash and electronic cash, consumers and vendors are looking for credit card payments on the Internet as one possible time-tested alter...

Department of management and accounting, Obafemi Awolowo University, Ile-Ife. Osun state, Nigeria Corresponding Author: Adeoti, O.O ___________________________________________________________________________ Abstract Following efforts at reducing excess cash flow in the economy necessitated the introduction point of sale terminal to the consumers by financial regulatory body in Nigeria; this st...

The flow of new information into a market changes prices as participants adjust their expectations in light of their new knowledge. This paper links two strands of existing micro-structure research by integrating recent findings on how macroeconomic announcements move markets with well-known theoretical relationships between asset prices and the value of their derivatives. This allows us to dev...

The treasurer of a bank is responsible for the cash management of several banking activities. In this work we focus on two of them: cash management in automatic teller machines (ATMs), and in the compensation of credit card transactions. In both cases a decision must be taken according to a future customers demand, which is uncertain. From historical data we can obtain a discrete probability di...

We present new formal definitions, algorithms, and motivating applications for three natural cryptographic constructions. Our constructions are based on a special type of algebraic group called bilinear groups. 1. Re-Signatures: We present the first public key signature scheme where a semi-trusted proxy, given special information, can translate Alice’s signature on a message into Bob’s signatur...

This paper considers the welfare consequences of two particularly simple rules for monetary policy: an interest rate peg and a money growth peg. The model economy consists of a real side that is the standard real business cycle model, and a monetary side that amounts to imposing cash-in-advance constraints on certain market transactions. The paper also considers the effect of assuming a rigidit...

Introduction Asian business has long had a fondness for cash. While the West gravitated toward purchases on credit – through cards or installments – Asia maintained its passion for the tangible. Four-fifths of all transactions in Hong Kong are handled with cash. It is into this environment that Mondex International, the London based purveyor of electronic smart cards, and Visa International, th...

The focus of this paper is to provide an analytical framework which can be used to investigate how financial risks affect the values of interconnected supply chain firms from a network perspective, and how financial risks affect the supply chain firms’ profitability as well as the cash and credit transactions. In particular, we develop a variational inequality equilibrium model in conjunction w...

We study the interplay between corporate liquidity and asset reallocation. Our model shows that financially distressed firms are acquired by liquid firms in their industries even in the absence of operational synergies. We call these transactions ‘‘liquidity mergers,’’ since their purpose is to reallocate liquidity to firms that are otherwise inefficiently terminated. We show that liquidity mer...