We developed a game-theoretic approach concerning the option pricing validity and tractability of which is ascertained by deriving the Black-Scholes formula. We also applied this approach to the welfare implications of the bailout policy. It is found that such a policy always worsens the economic welfare. This is because of the moral hazardous behavior of the buyer owing to the limited liabilit...

We consider a multi-armed bandit model in which two players choose between learning about the quality of a risky option (modelled as a Poisson process with unknown arrival rate), and competing for the use of a single shared safe option that can only be used by one agent at the time. Firstly, when players cannot reverse their decision to switch to the safe option, the socially optimal policy mak...

An option is a policy fragment that represents a solution to a frequent subproblem encountered in a domain. Options may be treated as temporally extended actions thus allowing us to reuse that solution in solving larger problems. Often, it is hard to find subproblems that are exactly the same. These differences, however small, need to be accounted for in the reused policy. In this paper, the no...

putin’s policies have had significant impact on russian foreign policy after the cold war. despite the fact that putin sought for increasing russia’s power to the same level as the cold war, however; he was aware that the nature of the international system has undergone serious changes. therefore, some specific factors including close collaboration with the united states, an energy-oriented for...

This article examined the extent to which methadone maintenance (MM) is considered a treatment alternative for drug-dependent parents, as reflected in the social work and child welfare literature and in child welfare policies. Findings were derived from a review of 15 social work journals published from 1996 through 2002 and from a review of child welfare policies in 27 states in regard to trea...

In this paper we examine an optimal investment policy of the firm that is financed by issuing equity and debt. Recently, a number of researchers have studied the interaction among firm’s investment and financing decisions under uncertainty by means of real option framework. In the literature, investment problems for a firm with growth options, that is financed with equity and debt are investiga...

This paper, studies the coordination of two-echelon supply chains using a credit (delayed) payment option and/or a wholesale price discount offer. We develop models for optimizing individual members’, as well as supply chain’s objectives. These models lead to the determination of the retail price and the order quantity for the buyer, as well as the production batch size, wholesale discount and/...

This paper derives optimal perfect hedging portfolios in the presence of transaction costs within the binomial model of stock returns, for a market maker that establishes bid and ask prices for American call options on stocks paying dividends prior to expiration. It is shown that, while the option holder's optimal exercise policy at the ex-dividend date varies according to the stock price, ther...

RFC 6724 defines default address selection mechanisms for IPv6 that allow nodes to select an appropriate address when faced with multiple source and/or destination addresses to choose between. RFC 6724 allows for the future definition of methods to administratively configure the address selection policy information. This document defines a new DHCPv6 option for such configuration, allowing a si...