This study investigates the economic role of jumps in foreign currency market. We fit exchange rates by the stochastic volatility with correlated jumps (SVCJ) model, and use Markov Chain Monte Carlo (MCMC) approach to estimate the model and identify jumps in exchange rates. Our empirical...

In the framework of Black-Scholes-Merton option pricing models, by employing exotic options instead of plain options or warrants, this paper presents an equivalent decomposition method for usual Callable Convertible Bonds (CCB). Furthermore, the analytic valuation formulae for CCB are worked out...

In this paper, a novel power/refrigerating combined-system driven by the low-grade waste heat of the flue gas was introduced. It coupled a transcritical organic Rankine cycle with a vapor compression refrigeration cycle. In order to understand basic characteristics of this novel combined-system,...

Automatic Generation Control (AGC) and Automatic Voltage Control (AVC) are key approaches to frequency and voltage regulation in power systems. However, based on the assumption of decoupling of active and reactive power control, the existing AGC and AVC systems work independently without any...