This paper tests for the presence of the favourite-longshot bias in a new setting. This bias #150 the tendency for bettors to underbet favourites and overbet longshots #150 has been found in most studies of pari-mutuel and bookmaking betting markets in the USA, the UK and Australia. However,...

The option features embedded in many bonds and fixed-income securities have made the binomial interest rate tree approach to bond valuation a valuable model for pricing debt securities. Fundamental to the application of the binomial model to bond valuation is the assumption about the underlying...

Since the 1970s, the U.S. economy has experienced relatively sharp swings in stock prices, interest rates, and exchange rates, which has increased the exposure of many debt, equity, and currency positions to market risk. Faced with this risk, many institutional investors have increased their use...

Understand today''s investment challenges and the role of the Bloomberg system In recent years, changes have swept through the investment industry like wildfire. Academia has followed along and provided new lenses for viewing this transformation, as well as new strategies for gaining a true...

Title Page -- Table of Contents -- Preface -- Content -- Acknowledgments -- About the Author -- PART 1: Futures and Forward Contracts -- CHAPTER 1: Futures Markets -- Introduction to Futures and Options Markets -- The Nature of Futures Trading and the Role of the Clearinghouse -- Types of...

Cover -- Series -- Title Page -- Copyright -- Dedication -- Preface -- Acknowledgments -- Part I: Bond Evaluation and Selection -- Chapter 1: Overview of the Financial System -- Real and Financial Assets -- Types of Debt Claims -- Financial Markets -- Types of Financial Markets -- Regulations --...