In this paper, we argue that, once the costs of maintaining the hedging portfolio are properly taken into account, semi-static portfolios should more properly be thought of as separate classes of derivatives, with non-trivial, model-dependent payoff structures. We derive new integral...

This paper (1) introduces a modified-Machlup (mM) assessment, as well as DQA and DQE concerns and a DQXY Thesis that tie the mM assessment to the Duhem-Quine (DQ) Thesis and theories of model validation (TMV), and then (2) applies the mM and DQA/DQE concepts to three archetypal models (i.e.,...

A half-century retrospect of Stoll (1969) provides lessons to be learned from the Put-Call Parity (PCP) and its applications. Many of the lessons are generalizable to models for risk assessment, valuation, and exposure that have been developed for more-complex financial derivatives. Yet since...

This paper investigates the price determinants and investment performance of classic cars comprising various categories starting from veteran cars (built between 1888 and 1907) up to modern classics (built between 1975 and 1990). We examine a sample of 29,000 classic car auction sales conducted...

American college football is a multibillion-dollar industry for the 130 schools that play at the highest level. College football is unique in that it must recruit student athletes, unlike high school or pro football. An entire multimillion-dollar industry has developed to provide recruiting...

We contribute to the literature on money line betting markets by investigating the relationships between the various methods used to derive subjective win probabilities from money lines. We show that, although the seven methods described appear to be unique, they actually share many common...

Research question: In response to the low profitability of European football clubs, in 2010, UEFA established its Financial Fair Play regulation (FFP) to encourage clubs not to spend more than they earn. We examine whether FFP's break-even rule has increased the profitability of football...

Betting markets have been frequently used as a natural laboratory to test the efficient market hypothesis and to obtain insights especially for financial markets. We add to this literature in analyzing the velocity and accuracy in which market expectations adapt to an exogenous shock: the...

The green bond market has grown rapidly since its inception in 2007. Climate-aligned standards provide investors with the confidence that their investments deliver a measurable climate benefit. Serving as a benchmark, these standards demonstrate alignment with the Paris Agreement, against which...