Several theories attempt to make sense of the closed-end funds discounts within a rational framework such as those by Malkiel(1977,1995), Barclay, Holderness and Pontiff (1993), Kumar and Nornoha (1992), Pontiff (1996), Chen, Kan and Miller (1993), Chopra, lee, Shleifer and Thaler (1993),...

In this article, we compare my mathematical model with Shleifer – Vishny model of short-termism. When noise traders are optimistic, then the share price increases relative to the net asset value (NAV) and funds sell at premium and therefore at small discount. In contrast, when they are...

In this article, we examine offshore hedge funds performance that pursues leveraged activities based on distressed securities. Distressed securities are related to the corporate bonds of bankrupted companies that start to get out from the crisis and are trying to reduce their loan exposures in...

Overestimation and Underestimation psychological paradigms, which constitute the two main theories, were the main building blocks of advances in Behavioral Finance. These two theories were added to explain noise trader risk, which is added to the fundamental risk that arbitrageur’s are facing....

In this article we compare the UK and the US insurance companies. According to the Association of British Insurers ABI, 2003/4, 806 insurance companies were authorised to carry on insurance business in the UK. In 2002, 592 of these are involved on doing general business and 160 were authorised...

In this article, we are going to explain the benefits of economic growth, employment, poverty reduction, and development. Each society in a poor or rich country in order to maximize its spiritual and welfare has to follow spiritual laws integrated with the Economic theories. A well successful...

We analyze the gamma effect on a call Nordea option delta and how a hedge position is achieved. There is significant time variation in the gamma effect on a call Nordea option delta and the traditional Black – Scholes model can not explain this deviation. The Black – Scholes model is used to...

In this article, we test the effects of the volatility of Gaussian distribution monthly returns of commodity futures contracts of a hedge fund portfolio. We test a linear Gaussian state space model and the Kalman filter ARMA(2,4) model of the natural logarithmic monthly market returns of the of...

In this article, we measure and compare the risk adjusted performance, the correlation and the covariance of global macro funds and funds of funds. Specifically, Global macro hedge fund manager focus to generate positive returns based on currency futures and options. He/she focused on fixed –...

In this article, we focus on one-period and two-period binomial methods to calculate the payoff of the expected value of the 6 month call option of Nordea Bank based on probabilities of share changes. Then, we discount the expected value of the call option back to today base on the risk-free...