We study the effects of granting an exit option allowing private party to terminate a Public–Private Partnerships contract early if it turns out be loss-making. In continuous-time setting with hidden information about returns on investment, we show that option, acting as risk-sharing device, can soften agency problems and, in so doing, spur investment and increase government's expected payoff, ...

For the Internet advertisement market, we consider a contract problem between advertisers and publishers. Among several ways of pricing online advertisements, the methods based on cost-per-impression (CPM) and cost-per-click (CPC) are the two most popular. The CPC fee is proportional to the click-through rate (CTR), which is uncertain and makes decisions of advertisers and publishers difficult....

Board certification has been part of the social contract in which physicians commit to maintaining up-to-date scientific knowledge and improving the quality of patient care. However, the maintenance of certification program has been controversial. This review summarizes the philosophical underpinnings, published literature, recent improvements, and future directions of the American Board of Ped...

despite important  role that has parties volition in the contract based on article 191, contract espousal will be achieve  bused on  advisable something that is under contract the important role that has silence  in the contract may not be responsible but in practice has very legal effects for contract parties. legal volition is formant from implication and adoption since silence  is not, silen...

When an insurance company sells a mutual fund with death and maturity guarantees to its client, it may consider allowing the client to extend the guarantee for some more years. If the renewal only happens once, a so-called rollover option is implied in the contract. In this paper, we show how the generalized Bermudan option can be applied to the special case of the rollover option. By avoiding ...

In this paper a Bayesian approach is utilized to analyze the role of the underlying asset and interest rate model in the market consistent valuation of life insurance policies. The focus is on a novel application of advanced theoretical and computational methods. A guaranteed participating contract embedding an American-style option is considered. This option is valued using the regression meth...

A derivative(or derivative security) is a financial instrument whose value depends on the value of other, more basic underlying variables, such as bonds or stocks. A stock option is a right to buy or sell a stock by a certain date for a certain price. The price in the contract is known as the exercise price or strike price; the date in the contract is known as the expiration date or maturity. S...

According to the theory of modern finance (see e.g. [10]) the arbitrage-free price of the American put option with a strike price K coincides with the value function V of the optimal stopping problem with the gain function G = (K x)+ . The optimal stopping time in this problem is the first time when the price process (geometric Brownian motion) falls below the value of a timedependent boundary ...