In this paper, European option pricing with stochastic volatility forecasted by well known GARCH model is discussed in context of Indian financial market. The data of Reliance Ltd. stockprice from 3/01/2000 to 30/03/2009 is used and resulting partial differential equation is solved byCrank-Nicolson finite difference method for various interest rates and maturity in time. Thesensitivity measures...

The electricity market has changed rapidly in the Northern European countries. Harmonisation of the legislation and trading methods widens the market area outside national limits. Vertical integration among electricity companies is changing the traditional structure of the inner market. Successful business in this new, more volatile market requires sophisticated techniques for identifying new m...

This paper focuses on a nonlinear stochastic model for financial simulation and forecasting based on assumptions of multivariate stochastic correlation, with an application to the European market. We present in particular the key elements of a structured hierarchical econometric model that can be used to forecast financial and commodity markets relying on statistical and simulation methods. The...

A retrospective analysis of European integration shows how political factors and economic opportunities /constraints have interacted in the progressive design of an unprecedented form of federalism. Political reconciliation of former enemies (France and Germany), modesty of the first steps of economic integration (a market for steel and coal, then of manufactured goods, prolonged by an extensio...

This paper empirically examines the theoretically ambivalent relationship between socially responsible investing (SRI) and stock performance. It contributes to the existing literature by considering both the US and the entire European stock markets and by using consistent world-wide corporate sustainability performance data. Our portfolio analysis from 1998 to 2009 is based on the common four-f...

In the European Union countries and neighboring regions, the expansion will produce a redistribution of the labour force between industries and countries. After the Romania’s adhesion to the European Union, the need for an increased productivity, the lack of capital, the competition on the EU market and the low wages have concurred to the intensification of the migration process of the labour f...

Two studies examine the psychological consequences the introduction of the Euro has for the evaluation and estimation of product prices. Research on comparison processes suggests that a single currency increases the comparability of prices. If this is indeed the case, then a reference price from another European country should be more likely to influence evaluation and estimation of a target pr...

We investigate whether there were common causes for the withdrawal from the regional aircraft market of three established manufacturers (BAE Systems, Fokker and Saab), while competitors thrived. We focus on the markets for 50and 100-seat aircraft. One cause concerning the 50-seat market was the introduction of a new class of aircraft, the regional jet, which pushed the less successful turboprop...

The history of the European Union (EU) has been characterized by two outstanding elements : the creation of a common market without internal frontiers between the participating member states and beyond this economic integration endeavours also towards a political union. My contribution is concentrated on the decisive steps and the main features of the process of European integration in the fram...