There is anecdotal evidence that the primary reason why managers hold cash on their balance sheets is to cover operating losses (operating shortfalls). In this paper, we rationalize this as an optimal response in a world with contract heterogeneity. Specifically, we relax the standard assumption...

Based on a systematic review and summarization of China’s 30 years of financial reform and development, this paper comprehensively analyzes the past, present and future development of China’s financial system and also presents the mechanism for China’s financial development from the view...

Due to the uncertainty in reality consists of randomness and fuzziness, we employ stochastic analysis and fuzzy set theory to explore the pricing of geometric Asian options. In the fuzzy stochastic world, the price of the underlying asset is assumed to follow a fuzzy stochastic process of which...