The dramatically growing disproportion between the value of corporate assets and market valuation has resulted in a well-researched schism between strategic management and financial theory. Options theory provides a potent tool to resolve this issue. We propose a model which is consistent with...

Energy, or renewable energy sources, is currently a frequently discussed topic. This paper focuses mainly on the economics of photovoltaic energy, specifically valuation of this technology. First, photovoltaic power systems are described, followed by a description of the method of analysis of...

This paper considers various options replication methods. Firstly, a specific type of barrier option, an up-and-out call, is considered. Other barrier options are briefly also described, and various types of barriers are considered. Secondly, a general definition of replication methods is...

Hedging strategies represent basic instrument used toward eliminating financial risk. Increasing volatility of financial markets and their globalization also lead to higher financial risks. These aspects are especially important for transitional and small open economies. The basic goal of the...

Tato studie se zabývá otázkou, zda nekoordinovaná opatření některých států měnící parametry národních systémů pojištění vkladů zavedená v polovině roku 2008 mohla vést k přesunu vkladů mezi členskými státy Evropské unie. Pozornost je věnována především...

The paper concentrates on the description of the Czech institutions which provide credit support to small and medium-sized entrepreneurs, farmers and exporters. The paper analyses the operations of the Czech-Moravian Guarantee and Development Bank and the Support and Guarantee Agricultural and...

Over the past few years, the Value at Risk indicator (VaR) has evolved, without doubt, into the most frequently used comprehensive tool for assessment of potential losses caused by adverse changes in market rates. However, the common models used for VaR assessment are based only on mid prices...

The Markets in Financial Instruments Directive (MiFID), was come into force in November 2007 and broadens the scope of both services and financial instruments covered previously by the Investment Services Directive (ISD). For example, the following securities were not covered by the ISD but are...

This work examines specific issues concerning the prudential management and regulation of foreign exchange risk. It begins with a description of the basic components of foreign exchange risk management. A central but frequently forgotten point of foreign exchange risk is that the key to its...