In this paper we analyze security loan guarantees in the light of the option pricing theory. We interpret them as put options on the cash flows of a secured debt. We highlight that the value of the guarantee is always positive before a loan's maturity and it depends on the same factors that...

This paper aims to empirically verify whether an individual European investor can enhance the diversification of his/her portfolio of financial assets by implementing an equity market neutral strategy. The analysis takes into consideration a typical European investor who has roughly diversified...

The competitive advantages of foreign direct investment can be largely dependent on location. In this study, we develop an innovative model to deal with this crucial step for any multinational involved in expanding its operations abroad. The model has a pure financial perspective and is based on...