We study power exchange options written on zero-coupon bonds under a stochastic string term-structure framework. Closed-form expressions for pricing and hedging bond power exchange options are obtained and, as particular cases, the corresponding expressions for call power options and constant...

In today’s low interest-rate environment, fixed income securities will not be able to deliver returns of the past. As structured solutions to the principal protection problem, fixed indexed annuities (FIA) can be effective bond replacements in a retirement portfolio through an efficient risk...

The putative confession (PC) instructions (“[suspect] told me everything that happened and wants you to tell the truth”) increases children’s honesty. However, research has shown that children who maintain secrecy despite the PC are more convincing. We examined whether (a) the PC...

One common and unfortunately overlooked obstacle to the detection of sexual abuse is non-disclosure by children. Non-disclosure may be expressed via concealment in response to recall questions or via active denials in response to recognition (e.g., yes/no) questions. In two studies, we evaluated...

By using submortgage data, we found that investors are being charged with a significant risk premium over owner occupants; besides that, they are also facing a more restricted loan; with the market getting hotter, this risk premium and restrictions are getting even worse. Being treated like...

Real option theory models real estate development as a developer-controlled exercise of an option to construct the optimal structure at the optimal time. In practice, most projects encounter a highly uncertain entitlement (i.e., regulatory approval) process that is largely uncontrollable by the...

Economist and public policy analysts have devoted considerable research to examining the work and retirement decisions of employees. Much less effort has been spent on understanding the concerns and challenges of employers if their workers delay retirement and remain on the job until older ages....