This paper develops a pricing model and empirically tests the pricing efficiency of options on the U.S. Dollar Index (USDX) futures contract. Empirical tests of the model indicate that the market consistently overprices these options relative to the derived model. This overpricing is more...

Purpose - Many energy firms currently compensate their risk managers with bonuses based on their ability to outperform a budget benchmark. This creates the incentive for a manager to “let it ride” (LIR) when prices move adversely to the benchmark, thus exposing the firm to further adverse...

This paper demonstrates how mezzanine financing can be used to minimise the weighted average cost of capital for a second stage growth firm waiting to obtain equity capital from an IPO. A model is provided that allows entrepreneurs to fit their available mezzanine financing cost structure to a...