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...

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,...

There are two general approaches to modeling stochastic interest rate movements using a binomial model—the equilibrium model and the calibration model. Both models assume that the interest rate's logarithmic return is normally distributed. However, a number of empirical studies have provided...

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...