pricing models, we have shown that financial economic problems can be solved using analytic methods. Analytic methods allow …'s (1999) asset pricing model with a $260^{th}$ order Taylor polynomial in less than ten seconds. In this case the error is … of allocation between stocks and bonds is mathematically more complex than the asset pricing problems, we have been able …

We formally compare two versions of the market Variance Risk Premium (VRP) measured in the equity and option markets … option prices …

Because levered equity is an option on the firm, variations in asset idiosyncratic risk (ivol) induces a negative … implications of the theory. Time variation in asset ivol causes time variation in the option value of equity that translates into …