In this article, we measure technical, allocative and overall cost efficiency of Chinese, Brazilian and Indian general and life insurance companies by applying Data Envelopment Analysis, DEA. DEA estimates efficiency in firms with multiple inputs and outputs. In our case, we are testing one...

In this article, we investigate if the persistent fluctuations of the discount of the US closed –end funds follow a martingale property. According to Wikipedia, a martingale is a sequence of random variables for which, at a particular time, the conditional expectation of the next value in the...

In this article, we calculate and value the payments of interest rate fluctuations of a plain vanilla swap with a principal amount of 500,000,000 Pounds. Swaps instrument aim to transfer or hedge credit risk. As they are over- the- counter instrument (OTC), they are more tailored to meet...

Money supply affects the monetary policy of interest rates. An increase or decrease of money supply affects the deposits interest rates. We have applied an Unrestricted Vector Autoregressive system to check for exogeneity tests, impulse- responses and variance decompositions of the macro factors...

In this article, we compare a synthetic call Ericsson B option with a synthetic underlying share and design the payoff. We aim to calculate the share price increases and decreases based on the factor given, the payoff of the synthetic call option in each case and the expected value of the option...

In this article, we estimate Lamda in matlab to calculate the leverage return of 3 months call and put options implied volatility by comparing the theoretical price with the market price of a Danish investment bank. There is significant time variation in the implied volatility and the...

In this article, we calculate the effects of interest rate swaption at expiration with different LIBOR rates and present value factors. We compare our results with the balance of payments financial account to determine the outflow required in relation to the inflows. Our sample consists of data...

In this article, we explain and illustrate the current account, the capital account and the financial account of the balance of payments. We illustrate the J-curve effect in relation to the Marshall-Lerner condition. The balance of payments shows the international financial position of the...

Options, swaps, futures and forward contracts are the most typical types of derivatives. But what is a derivative? It is a security whose pricing structure is derived from a main asset such as stocks, commodities, bonds, currencies, interest rates and market indexes. The valuation of a...

In this article, we analyze credit events in Greece from 2008-2016 and the effects on settlement on credit default swap. We investigate payments in relation to swap spreads. But what is a credit default swap? It is a financial instrument the value of which is derived from an underlying market...