For environmental problems such as global warming future costs must be balanced against present costs. This is traditionally done using an exponential function with a constant discount rate, which reduces the present value of future costs. The result is highly sensitive to the choice of discount...

We present a dynamical model that describes the evolution of offer and demand in a financial market. The model considers a fully connected network of interacting agents that may be willing to operate in the market, either by selling the stock or by buying it, or that are not interested in...

In this paper we will develop a methodology for obtaining pricing expressions for financial instruments whose underlying asset can be described through a simple continuous-time random walk (CTRW) market model. Our approach is very natural to the issue because it is based in the use of renewal...

American options are financial instruments that can be exercised at any time before expiration. In this paper we study the problem of pricing this kind of derivatives within a framework in which some of the properties - volatility and dividend policy - of the underlaying stock can change at a...