Except for special cases, passport option s do not have closed-form solutions. Here we show how to derive approximate solutions using finite element methods. We also show that finite elements offer advantages in computing the hedge parameters.

Except for special cases, passport option s do not have closed-form solutions. Here we show how to derive approximate solutions using finite element methods. We also show that finite elements offer advantages in computing the hedge parameters.

Reverse Convertibles have become very popular in the German market. They are a common banking product for the private customer as well as for the institutional investor. Like ordinary convertibles it is a hybrid product. Its price depends on the development of one or several stock or indices as...

The Finite Element Method is a well-studied and well-understood method of solving partial differential equations. It's applicability to financial models formulated as PDEs is demonstrated. It's advantage concerning the computation of accurate `Greeks' is delineated. This is demonstrated with...

It's puzzling that most projects fail to complete within the predetermined timeframe given that timing considerations rank among the major goals in project management. We argue that when managers can extract private benefits from working on a project, project delay becomes optimal. We introduce...

I analyze the long-term labor market returns after completing a higher education entrance (HEE) qualification as a qualified worker older than age 20 (Zweiter Bildungsweg), using data of the German National Educational Panel Study (NEPS). I use a Mincer-type equation, where the school-leaving...

This paper discusses the central macroeconomic claims that are made in Thomas Piketty's book 'Capital in the Twenty-first Century'. The paper aims to show that Piketty's contentions are not only logically flawed but also contradicted by his own data.

The question of whether migration can be an equilibrating force in the labour market is an important criterion for an optimal currency area. It is of particular interest currently in the context of high and rising levels of labour market disparities, in particular within the Eurozone where there...

While the worldwide spread of smartphones continues, developing countries have become important markets for these devices. Smartphones´ independence of landline networks qualifies them for communication and Internet access in rural areas of developing countries. Drawing upon rural Southeast...