Implied volatilities are frequently used to quote the prices of options. The implied volatility of a European option on a particular asset as a function of strike price and time to maturity is known as the asset's volatility surface. Traders monitor movements in volatility surfaces closely. In...

Das internationale führende Standardwerk richtet sich an Studenten und Graduierte der Betriebswirtschaft und Volkswirtschaft. Auch für viele Praktiker, die anwendbare Kenntnisse über Futures- und Optionsmärkte erlangen wollen, ist das Werk von großem Nutzen.

This paper provides extensions to existing procedures for representing one-factor no-arbitrage models of the short rate in the form of a tree. It allows a wide range of drift functions for the short rate to be used in conjunction with a wide range of volatility assumptions. It shows that, if the...

A market-leveraged stock unit (MSU) is a form of employee compensation in which the number of shares received on the vesting date depends on the stock price at that time. MSUs have been proposed as a way of overcoming some of the drawbacks of stock options and restricted stock units. In this...