This book presents the mathematics that underpins pricing models for derivative securities in modern financial markets, such as options, futures and swaps. This new edition adds substantial material from current areas of active research, such as coherent risk measures with applications to hedging, the arbitrage interval for incomplete discrete-time markets, and risk and return and sensitivity analysis for the Black-Scholes model.

Recognizing the increasing importance of environmental issues, energy prices, material availability and efficiency and the difficulty of adequately managing these issues in traditional accounting systems, several companies all over the world have started implementing Environmental and Material Flow Cost Accounting (EMA and MFCA).

Environmental and Material Flow Costs Accounting explains and updates the approach developed for the United Nations Department of Economic and Social Affairs (DSD/UNDESA) and the International Federation of Accountants (IFAC) and in addition includes experiences of several case studies and recent developments regarding EMA and MFCA in national statistics and ISO standardization."

This book describes the modelling of prices of ?nancial assets in a simple d- crete time, discrete state, binomial framework. By avoiding the mathematical technicalitiesofcontinuoustime?nancewehopewehavemadethematerial accessible to a wide audience. Some of the developments and formulae appear here for the ?rst time in book form. We hope our book will appeal to various audiences. These include MBA s- dents, upperlevelundergraduatestudents, beginningdoctoralstudents, qu- titative analysts at a basic level and senior executives who seek material on new developments in ?nance at an accessible level. The basic building block in our book is the one-step binomial model where a known price today can take one of two possible values at a future time, which might, for example, be tomorrow, or next month, or next year. In this simple situation "risk neutral pricing" can be de?ned and the model can be applied to price forward contracts, exchange rate contracts and interest rate derivatives. In a few places we discuss multinomial models to explain the notions of incomplete markets and how pricing can be viewed in such a context, where unique prices are no longer available. The simple one-period framework can then be extended to multi-period m- els.TheCox-Ross-RubinsteinapproximationtotheBlackScholesoptionpr- ing formula is an immediate consequence. American, barrier and exotic - tions can all be discussed and priced using binomial models. More precise modelling issues such as implied volatility trees and implied binomial trees are treated, as well as interest rate models like those due to Ho and Lee; and Black, Derman and Toy.

Interest Rate Models: an Infinite Dimensional Stochastic Analysis Perspective studies the mathematical issues that arise in modeling the interest rate term structure. These issues are approached by casting the interest rate models as stochastic evolution equations in infinite dimensional function spaces. The book is comprised of three parts. Part I is a crash course on interest rates, including a statistical analysis of the data and an introduction to some popular interest rate models. Part II is a self-contained introduction to infinite dimensional stochastic analysis, including SDE in Hilbert spaces and Malliavin calculus. Part III presents some recent results in interest rate theory, including finite dimensional realizations of HJM models, generalized bond portfolios, and the ergodicity of HJM models.

The integration of accounting and the economics of information developed by Joel S. Demski and those he inspired has revolutionized accounting thought. This volume collects papers on accounting theory in honor of Professor Demski. The book also contains an extensive review of Professor Demski 's own contributions to the theory of accounting over the past four decades.

A lot of economic problems can formulated as constrained optimizations and equilibration of their solutions. Various mathematical theories have been supplying economists with indispensable machineries for these problems arising in economic theory. Conversely, mathematicians have been stimulated by various mathematical difficulties raised by economic theories. The series is designed to bring together those mathematicians who were seriously interested in getting new challenging stimuli from economic theories with those economists who are seeking for effective mathematical tools for their researchers.

The book focuses on applications of belief functions to business decisions. Section I introduces the intuitive, conceptual and historical development of belief functions. Three different interpretations (the marginally correct approximation, the qualitative model, and the quantitative model) of belief functions are investigated, and rough set theory and structured query language (SQL) are used to express belief function semantics. Section II presents applications of belief functions in information systems and auditing. Included are discussions on how a belief-function framework provides a more efficient and effective audit methodology and also the appropriateness of belief functions to represent uncertainties in audit evidence. The third section deals with applications of belief functions to mergers and acquisitions; financial analysis of engineering enterprises; forecast demand for mobile satellite services; modeling financial portfolios; and economics.

This is an undergraduate textbook on the basic aspects of personal savings and investing with a balanced mix of mathematical rigor and economic intuition. It uses routine financial calculations as the motivation and basis for tools of elementary real analysis rather than taking the latter as given. Proofs using induction, recurrence relations and proofs by contradiction are covered. Inequalities such as the Arithmetic-Geometric Mean Inequality and the Cauchy-Schwarz Inequality are used. Basic topics in probability and statistics are presented. The student is introduced to elements of saving and investing that are of life-long practical use. These include savings and checking accounts, certificates of deposit, student loans, credit cards, mortgages, buying and selling bonds, and buying and selling stocks. The book is self contained and accessible. The authors follow a systematic pattern for each chapter including a variety of examples and exercises ensuring that the student deals with realities, rather than theoretical idealizations. It is suitable for courses in mathematics, investing, banking, financial engineering, and related topics.

Statistical Tools for Finance and Insurance" "presents ready-to-use solutions, theoretical developments and method construction for many practical problems in quantitative finance and insurance. Written by practitioners and leading academics in the field, this book offers a unique combination of topics from which every market analyst and risk manager will benefit.

Features of the significantly enlarged and revised second edition: Offers insight into new methods and the applicability of the stochastic technologyProvides the tools, instruments and (online) algorithms for recent techniques in quantitative finance and modern treatments in insurance calculationsCovers topics such as
- expected shortfall for heavy tailed and mixture distributions*
- pricing of variance swaps*
- volatility smile calibration in FX markets
- pricing of catastrophe bonds and temperature derivatives*
- building loss models and ruin probability approximation
- insurance pricing with GLM*
- equity linked retirement plans*(new topics in the second edition marked with*)Presents extensive examples

In recent years portfolio optimization and construction methodologies have become an increasingly critical ingredient of asset and fund management, while at the same time portfolio risk assessment has become an essential ingredient in risk management. This trend will only accelerate in the coming years. This practical handbook fills the gap between current university instruction and current industry practice. It provides a comprehensive computationally-oriented treatment of modern portfolio optimization and construction methods using the powerful NUOPT for S-PLUS optimizer.

Stochastic calculus has important applications to mathematical finance. This book will appeal to practitioners and students who want an elementary introduction to these areas.

From the reviews: "As the preface says, 'This is a text with an attitude, and it is designed to reflect, wherever possible and appropriate, a prejudice for the concrete over the abstract'. This is also reflected in the style of writing which is unusually lively for a mathematics book." --ZENTRALBLATT MATH

A completely revised update of the First Edition, this book focuses exclusively on outsourcing information technology such as data processing, computer systems, and specialized software programs essentially an intellectual property transaction. It covers, among other topics, licensing and software development agreements, sales of tangible assets, human resources management, and more.

Stochastic optimization problems arise in decision-making problems under uncertainty, and find various applications in economics and finance. On the other hand, problems in finance have recently led to new developments in the theory of stochastic control. This volume provides a systematic treatment of stochastic optimization problems applied to finance by presenting the different existing methods: dynamic programming, viscosity solutions, backward stochastic differential equations, and martingale duality methods. The theory is discussed in the context of recent developments in this field, with complete and detailed proofs, and is illustrated by means of concrete examples from the world of finance: portfolio allocation, option hedging, real options, optimal investment, etc. This book is directed towards graduate students and researchers in mathematical finance, and will also benefit applied mathematicians interested in financial applications and practitioners wishing to know more about the use of stochastic optimization methods in finance.

Controller haben fA1/4r Nichtcontroller das Image vom bAsen A berwacher, ErbsenzAhler und Geizkragen. Dieses Buch zeigt, dass das Controlling gar nicht so geheimnisvoll ist, wie es manche Controller gerne erscheinen lassen. Anhand vieler anschaulicher Beispiele erklAren die Autoren die unterschiedlichen Formen des Controllings und dessen Aufgabenbereiche. Sie erfahren, was es mit Gewinn-und-Verlust-Rechnung, Deckungsbeitragsrechnung und Bilanzen auf sich hat, wozu Kennzahlen gut sind und welche unterschiedlichen Spielarten des Controllings es gibt. Ein angenehm lesbares Buch fA1/4r alle, die sich beruflich mit dem Controlling beschAftigen mA1/4ssen oder einfach ihren Controller besser verstehen mAchten.

Praise for Finance for Strategic Decision Making

"Business decision making is a process too important to be delegated. This book provides general managers with a powerful framework, in accessible language, allowing them to understand, analyze, and make firm value-creating decisions for their corporations."
-Joao Luis Barroso, vice president, Portugal Telecom, Brazil

"M. P. and Vikram boil down thirty years of teaching executives the subject of finance into an easy-to-read overview. This book is ideal for someone ready to transform their finance understanding from a point of unconnected concepts into a fundamental framework of finance."
-Mark Lund, Procter and Gamble Research & Development

"This is 'must know' stuff for leaders stepping into the realm of corporate decision making. M. P. Narayanan lays out a crystal-clear framework that I used to substantially improve project selection and strategy reviews."
-Don McMonagle, former astronaut and director of strategy and development, Pratt & Whitney Space Propulsion

"M. P. Narayanan uses his engineering background to create an educational experience that might be called 'Applied Finance.' The book does not bog down the reader with financial theories, but rather uses the context of real business situations to bring to light the appropriate application of finance principles."
-David C. Poirier, graduate, University of Michigan Executive MBA Class of 2003

Volatility forecasting is crucial for option pricing, risk management and portfolio management. This book gives clear and practical guidance on how to model and forecast volatility using only volatility models that have been tested for their forecasting performance. The book focuses on describing, evaluating and comparing research in volatility forecasting and provides some background on volatility definition, estimation and some principles on forecasts evaluation. The book covers both time series econometric volatility models and implied volatility model based on Black-Scholes and continuous time stochastic volatility option pricing models.

"The present book by Professor Ser-Huang Poon surveys this literature carefully and provides a very useful summary of the results available. By so doing, she allows any interested worker to quickly catch up with the field and also to discover the areas that are still available for further exploration."
--Sir Clive W. J. Granger, University of California in San Diego

"Professor Poon exposes in her book current state-of-the-art volatility forecasting methods. Beginning with a description of various conditional volatility models, be it discrete or continuous, the link with option pricing models is well established. The book proceeds with surveying the current volatility literature: what type of volatility should be used to price options, how can volatility of various assets be predicted, how volatility can be used within a value-at-risk setting. This well written book should be useful both for the practitioner and the academic/student interested in volatility."
--Professor Michael Rockinger, FAME and University of Lausanne, Switzerland

Discovered in the seventies, Black-Scholes formula continues to play a central role in Mathematical Finance. We recall this formula. Let (B ,t? 0; F ,t? 0, P) - t t note a standard Brownian motion with B = 0, (F ,t? 0) being its natural ?ltra- 0 t t tion. Let E := exp B? ,t? 0 denote the exponential martingale associated t t 2 to (B ,t? 0). This martingale, also called geometric Brownian motion, is a model t to describe the evolution of prices of a risky asset. Let, for every K? 0: + ? (t) :=E (K?E ) (0.1) K t and + C (t) :=E (E?K) (0.2) K t denote respectively the price of a European put, resp. of a European call, associated with this martingale. Let N be the cumulative distribution function of a reduced Gaussian variable: x 2 y 1 ? 2 ? N (x) := e dy. (0.3) 2? ?? The celebrated Black-Scholes formula gives an explicit expression of? (t) and K C (t) in terms ofN : K ? ? log(K) t log(K) t ? (t)= KN ? + ?N ? ? (0.4) K t 2 t 2 and ? ?

Globalization and worldwide communications have overridden national boundaries. In many markets, the effect of global financial interdependence (governmental, political, and business) is now so interconnected that they must be considered with almost any decision being made. This book shows how successful enterprises have integrated information technology and business strategies, culture, and ethics in order to optimize information value, attain business objectives, and capitalize on technologies even in highly competitive environments.

To be successful in the hedge fund business, financial professionals must understand every aspect of this dynamic investment vehicle. With Hedge Fund Course as your guide, you'll become familiar with the different aspects of hedge funds and discover how to achieve success in this field.

Hedge Fund Course presents all the technical and quantitative knowledge necessary to understand hedge funds, and complements the less-technical information presented in the popular How to Create and Manage a Hedge Fund--also written by Stuart McCrary. This self-study guide is designed to let you quickly learn as much as you require. Short chapters describe the essential facts on a particular hedge fund topic, and the question-and-answer section that accompanies each chapter allows you to delve deeper into the topics reviewed in the text. After a brief introduction, Hedge Fund Course gets down to business, with discussions of: Different types of hedge funds and hedge fund investors Hedge fund investment techniques Hedge fund business models Measuring the performance of hedge funds Legislation and regulation of hedge funds Accounting and taxation aspects of hedge funds Risk management and hedge funds

Whether you're in the hedge fund business, have hedge fund clients, or invest in hedge funds, Hedge Fund Course can help you refine and develop your knowledge of this field.

It is imperative to equip practitioners with a workable framework to manage component-based development in distributed environments, and to offer a theoretical construct to academics wishing to advance the study of global teams. This book outlines the key challenges faced by projects and offers tools to implement CBD in global teams.

Die Autoren vermitteln anschaulich und verstandlich die Grundlagen der handelsrechtlichen Konzernrechnungslegung. Aufgrund der BerA1/4cksichtigung aller - zum Teil sehr weitreichenden - A nderungen im HGB durch das BilMoG basiert es auf dem neusten Rechtsstand und fA1/4hrt den Leser durch die ab dem Jahr 2009 relevanten Regelungen der handelsrechtlichen Konzernrechnungslegung. Der Prozess der Konzernabschlusserstellung wird von der Verpflichtung zur Konzernrechnungslegung A1/4ber die Abgrenzung des Konsolidierungskreises und die Aufbereitung der Einzelabschlussdaten bis hin zur Vornahme aller notwendigen KonsolidierungsmaA nahmen erlautert. Dabei wird auf die einzelnen Bestandteile der Konzernrechnungslegung Bezug genommen. Die Bereiche der Konzernbilanzpolitik und Konzernbilanzanalyse werden ebenfalls betrachtet. Hohe Praxisrelevanz erlangt das Buch neben seiner Aktualitat durch seine kompakte Darstellungsweise sowie die zahlreichen Beispiele, die die theoretischen AusfA1/4hrungen veranschaulichen und deren Verstandnis erleichtern. Hierbei dient es als Nachschlagewerk und praktischer Leitfaden. Zielsetzung ist nicht die Diskussion von Spezialfragen, sondern eine kompakte Information A1/4ber alle wesentlichen Grundlagen der handelsrechtlichen Konzernrechnungslegung. Mit dieser Zielsetzung richtet sich das Werk an Praktiker und alle an dieser Thematik Interessierten.

Marketing guru Philip Kotler shows entrepreneurs how to market their companies to investors
How can businesses do a better job of attracting capital? The answer: "Marketing " Marketing expert Philip Kotler teams up with a renowned marketing consultant and an INSEAD professor for this practical, marketing-based approach to raising capital from investors. Based on the premise that entrepreneurs and business owners often don't understand what investors want and how they make their decisions, Attracting Investors offers a larger view of the factors involved, and guides both startup and veteran firms in effectively raising capital.
Philip Kotler (Glencoe, IL) is the S.C. Johnson & Son Distinguished Professor of International Marketing at Northwestern University's Kellogg School of Management, and the author of 35 books. Hermawan Katajaya (Jakarta, Indonesia) runs MarkPlus, the largest marketing consulting firm in Indonesia, and is coauthor with Kotler of several books, including Repositioning Asia and Rethinking Marketing. S. David Young (Fontainebleu, France) is a Professor of Accounting and Control at INSEAD in Fountainebleu, France.

The indispensable guide to detecting and solving financial crime in the office

Low-level financial crimes are a fact of life in the modern workplace. Individually these crimes are rarely significant enough to warrant the hiring of professional investigators, but if left unchecked, small crimes add up to big losses. In companies without dedicated fraud investigators, detecting and solving low-level crimes generally falls to managers and internal auditors. Financial Crime Investigation and Control offers tips, tools, and techniques to help professionals who lack investigative experience stem the tide of small financial crimes before it becomes a tsunami.

Inside you’ll find expert guidance on investigating and uncovering common types of fraud, including:

• Credit card fraud
• Consumer fraud
• Kickbacks
• Bid rigging
• Inflated invoices
• Inventory theft
• Theft of cash
• Travel and subsistence claims
• Check fraud
• ID fraud
• Ghost employees
• Misappropriation schemes
• Computer-related crime
• Financial statement fraud

Christian Grube analyses the value potential of patent protection of knowledge-based competitive advantages. His findings show that complex licensing contracts represent a profitable strategy to exploit the value of patented inventions and that bibliographic patent data can support the valuation of complex patent portfolios.

This book looks at the provision of finance in the Middle East and North Africa (MENA) by the IMF and World Bank in return for economic liberalization, exploring the political motivations of funding and geo-politics in recipients. The effectiveness of funding is questioned, with evidence from four MENA countries.