We study the valuation of unit-linked life insurance contracts with surrender guarantees. Instead of solving an optimal stopping problem, we propose a more realistic approach accounting for policyholders’ rationality in exercising their surrender option. The valuation is conducted at the...

Die vorliegende Studie untersucht den Realoptionsansatz als Bewertungsverfahren für unentwickelte Immobilien. Im Gegensatz zu klassischen Bewertungsverfahren berücksichtigt das Realoptionsverfahren explizit die Unsicherheit zukünftiger Mieterträge und die daraus folgenden...

The effects of the three-point rule in first league German soccer are tested empirically and compared to games from the German cup-competition. The inclusion of cup games ensures that changes in league games can be attributed to the three-point rule. As a result of their relative devaluation,...

Cross currency swaps are powerful instruments to transfer assets or liabilities from one currency into another. The market charges for this a liquidity premium, the cross currency basis spread, which should be taken into account by the valuation methodology. We describe and compare two valuation...

To evaluate the effects of a universal program, i.e. all targeted get access, is associated with the problem that there are no individuals who represent the hypothetical or counterfactual state of being eligible to the program but not participating in it. In this study of a Swedish universal...

Ecological damages have to be evaluated in monetary terms for implementation in an economic analysis. Economic theory is based upon individual preferences (methodological individualism): Ecological damages can only be socially evaluated when individual values are available. However, in sharp...