This article describes a new idea of American option pricing and its properties, based on an information-based model called the BS-BHM-Updated model, which helps obtain analytic solution call put price. Using authors. The first research result is condition that can be applied if value log current timeshare divided by previous time negative. Second, under has same as Black Scholes, whereas it fo...

American option for interest rate caps and coupon bonds are analyzed in the formalism of quantum finance. Calendar time and future time are discretized to yield a lattice field theory of interest rates that provides an efficient numerical algorithm for evaluating the price of American options. The algorithm is shown to hold over a wide range of strike prices and coupon rates. All the theoretica...

Even though many studies have discussed outsourcing contracts from the client’s perspective, little research has been done from the vendor’s perspective. In this paper, we consider a vendor’s outsourcing contract decision-making process, during which the market price and the vendor’s operation cost are uncertain. This paper develops real option models to investigate whether a vendor firm should...

The object of this study was to investigate some implications of the tenets of behavioral finance on the pricing of financial derivatives. In particular, based on the work by Wolff et al (2009) we have investigated how prospect theory (Kahneman and Tversky, 1979) can be intregrated into the Black and Scholes (1973) option pricing framework. We have then used the resulting " behavioral version "...

We examine contract forms used in stock mergers from the announcement of initial definitive agreement to the final completion or termination of the deal, as well as the renegotiation process in between. Within the incomplete contract framework, we first build a model that allows for renegotiation of the initial contract following the arrival of new information. We demonstrate that the signing o...