The message that finance cannot do much to enhance shareholder value appears to conflict with the everyday business observation that firms do care about finance -- by hiring CFOs and treasurers and paying careful attention to financial strategies suggested by them. We know now that CFOs can...

This paper focuses on the valuation of caps, floors, and collars in a contingent claim framework under continuous time. These instruments are interpreted as options on traded zero coupon bonds. The bond prices themselves are used as the underlying stochastic variables. This has the advantage...

This paper examines optimal hedging behavior in a market where preferences for current consumption are partly determined by the consumer's past consumption history. The model considers an individual exposed to price risk, who allocates wealth between consumption and futures contracts over a...