The recent implementation of the EU Emissions Trading Scheme (EU ETS) in January 2005 created new financial risks for emitting firms. To deal with these risks, options are traded since October 2006. Because the EU ETS is a new market, the relevant underlying model for option pricing is still a...

This article examines corporate bailouts from several ethical perspectives. Utilitarian analysis concludes that bailouts cannot be ethically justified because the losers exceed the winners. Applying rights theory reaches the same conclusion for different reasons