Economic growth of LDCs depends decisively on the volume of foreign currency avaliable to them. Apart from financial aid, such currencies can only be earned by exports. However, almost 90 p.c. of all export revenue of LDCs flows from shipments of raw and base materials, and thus, increasing...

This paper examine differences between risk-neutral and objective probability densities of future interest rates. The identification and quantification of these differences are important when risk-neutral densities (RNDs), such as option-implied RNDs, are used as indicators of actual beliefs of...