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 provides a retrospect of the Black-Scholes-Merton (BSM) argument that is used to derive the common BSM formula. The paper utilizes and builds upon a frame used to provide a retrospect of the Put-Call Parity (PCP) provided in Wurts (2018a). Accordingly, this paper fills a promise that...

It is an addendum provided for:Wurts, Henry, A narrow 50-year retrospect of the original Black-Scholes-Merton Formula derivations (December 31, 2022). Available at SSRN: https://ssrn.com/abstract=4315460

This paper is an addendum to Henry C. Wurts, On micro-Corporate-Governance (micro-CG) issues regarding the Malliaris Single-Sentence (MSS) Derivation of the Black-Scholes-Merton (BSM) Equation, as a demonstration that Derivations Matter (DM) (August 28, 2021). Available at SSRN:...

The Black-Scholes-Merton (BSM) Equation, a deterministic fundamental partial differential equation (PDE) used to characterize price-movement of broad derivative financial instruments based on a stochastic representation of price-movement of a primitive financial instrument, can be derived from a...

While macro-corporate-governance (e.g., addressing how a governance process should be administered within a corporate structure) seems to be widely discussed in academic literature, a discussion of micro-corporate-governance (e.g., assessing specific models, including regarding whether they...

Leveraged Employee Stock Ownership Plan (quot;ESOPquot;) transactions originated in the 1950s, yet there are still unresolved valuation issues that arise from a complex set of operating expenses, financing structures and contingent claims that are unique to leveraged ESOPs. Although complex,...

The Indian corporate bond market is still developing, and as such there are some peculiarities that might not be found in a matured market. This paper describes the state of development and key obstacles to further development. It reveals some unusual market behavior and patterns from available...

In Europe, most football clubs have long been positioned as business projects, which are active in financial markets and apply various funding tools. The 2018 FIFA World Cup inspired a new wave of interest in Russian football and created attractive conditions for applying new funding tools. The...