Featuring international contributors from both industry and academia, Numerical Methods for Finance explores new and relevant numerical methods for the solution of practical problems in finance. It is one of the few books entirely devoted to numerical methods as applied to the financial field. Presenting state-of-the-art methods in this area, the book first discusses the coherent risk measures theory and how it applies to practical risk management. It then proposes a new method for pricing high-dimensional American options, followed by a description of the negative inter-risk diversification effects between credit and market risk. After evaluating counterparty risk for interest rate payoffs, the text considers strategies and issues concerning defined contribution pension plans and participating life insurance contracts. It also develops a computationally efficient swaption pricing technology, extracts the underlying asset price distribution implied by option prices, and proposes a hybrid GARCH model as well as a new affine point process framework. In addition, the book examines performance-dependent options, variance reduction, Value at Risk (VaR), the differential evolution optimizer, and put-call-futures parity arbitrage opportunities. Sponsored by DEPFA Bank, IDA Ireland, and Pioneer Investments, this concise and well-illustrated book equips practitioners with the necessary information to make important financial decisions.

The purpose of NATO: From Regional to Global Security Provider is to provide a comprehensive analysis of the Alliance's new vision (the new Strategic Concept) and common security impact - associated tasks to be undertaken within a short and longer term time horizon. The book serves as a relevant and timely study of the most pressing issues facing NATO today - including recent lessons gained. It provides recommendations for consideration and further discussion (i.e., the "what" and the "how" regarding future policy options for the North Atlantic Alliance). The intended audience includes international security policy-makers, government officials, elected leaders, academics, interested professionals, civil society and members of the public. Specifically, the book focuses on six topic areas. Part I, the Introduction, relates to conceptual and organizational changes, membership expansion and enlargement. Part II consists of emerging security challenges, including terrorism, piracy, homeland threats, cyber defense and information warfare, energy security, non-proliferation and countering WMD. Part III incorporates national and regional challenges such as the Balkans, Iraq, Afghanistan/Pakistan, the Horn of Africa, North Africa and the Middle East. Part IV deals with military and non-military assets. It integrates capability development, burden sharing, common funding, ballistic missile defenses and the phased adaptive approach, non-strategic nuclear weapons, and a broad-based comprehensive approach to security. Part V covers multifaceted collaborative relationships between NATO and various governmental, inter-governmental, and non-governmental bodies. This section incorporates outreach and engagement with Russia, India, Pakistan, and China, as well as with other non-NATO countries, the Mediterranean Dialogue (MD), and the Istanbul Cooperation Initiative (ICI). Formal and informal linkages with the EU, OSCE, and the UN are also essential features of such a cooperative activity. Additionally, the expanding participation of civil society and growing involvement of new key NATO interlocutors (e.g., NGOs, academics) have created new international partnering opportunities as a means of bolstering global security through innovative public-private partnerships. Part VI includes a Summary and Conclusions.

Featuring international contributors from both industry and academia, Numerical Methods for Finance explores new and relevant numerical methods for the solution of practical problems in finance. It is one of the few books entirely devoted to numerical methods as applied to the financial field. Presenting state-of-the-art methods in this area, the book first discusses the coherent risk measures theory and how it applies to practical risk management. It then proposes a new method for pricing high-dimensional American options, followed by a description of the negative inter-risk diversification effects between credit and market risk. After evaluating counterparty risk for interest rate payoffs, the text considers strategies and issues concerning defined contribution pension plans and participating life insurance contracts. It also develops a computationally efficient swaption pricing technology, extracts the underlying asset price distribution implied by option prices, and proposes a hybrid GARCH model as well as a new affine point process framework. In addition, the book examines performance-dependent options, variance reduction, Value at Risk (VaR), the differential evolution optimizer, and put-call-futures parity arbitrage opportunities. Sponsored by DEPFA Bank, IDA Ireland, and Pioneer Investments, this concise and well-illustrated book equips practitioners with the necessary information to make important financial decisions.