In this paper we make a survey of market-indexed CDs and list 11 factors that must be taken into account in the design of market-indexed CDs. We extend the pricing model developed by Hernandez et al. (2011), which was a non-coupon paying market-indexed CD model, into a model in which the...

In this paper, we develop valuation models for market-indexed certificate of deposits (market-indexed CD) based on option pricing model. We show that the payoff of an uncapped market-indexed CD can be duplicated by the combination of a zero coupon bond and a call option on the index....

In this paper we introduce a new financial product named Outperformance Certificates. We study the €43 billion sample by examining 1,507 issues of the certificates outstanding in August 2005 issued by banks in Europe. We present formulas to price the certificates and empirically examine the...

This study examines two channels through which Chinese government intervenes in business activities: direct intervention via government ownership and indirect intervention via strategic development plans in selected areas. The findings show that these interventions affect corporate policies...

In this study, we document evidence of a quot;reversequot; weekend effect - whereby, Monday returns are significantly positive and they are higher than the returns on other days of the week - over an extended period of eleven years (from 1988 to 1998). We also find that the quot;traditionalquot;...

In this study, an interesting aspect of the secondary market's pricing of the riskiness of insured municipal bonds is examined. Do secondary market investors still consider the underlying intrinsic credit quality of the issuer in pricing insured bonds? Is the pricing of this 'issuer effect'...

In this paper, we find a 'reverse%rsquo; weekend effect - whereby returns for Monday are positive and significantly greater than returns for the preceding Friday - in recent data for major stock indexes. We also find that, while a weak weekend effect exists in portfolios of smaller firms, the...