Equity Warrants Pricing Formula for Uncertain Financial Market

In this paper, inside the system of uncertainty theory, the valuation of equity warrants is explored. Different from the strategies of probability theory, the valuation problem of equity warrants is unraveled by utilizing the strategy of uncertain calculus. Based on the suspicion that the firm price follows an uncertain differential equation, a valuation formula of equity warrants is proposed for an uncertain stock model.© 2022 by the author. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).fi=vertaisarvioitu|en=peerReviewed

The impact of interest rates on bank stock returns

The interest rate has a wide impact in the financial world, the center of which is banks and monetary policy. A rise in interest rates has generally been found to have a negative effect on stock returns, but there have been different research results over the course of the stock market history. Especially during various crises, such as the 2008 financial crisis and during Covid-19, central banks have had to take measures to calm the situation, in which case interest rate changes are often part of monetary policy, affecting particularly banks. This study examines banks' operations and especially, examines the effects of interest rate changes on bank stocks returns. The focus is on US banks of different asset sizes to gain relevant information extensively. This study examines the period after the financial crisis to maximize the evidence and reliability

Multi-Dimensional Uncertain Calculus with Liu Process

Abstract Uncertain calculus deals with the integral and differential of some uncertain processes. So far, uncertain integrals have been defined with respect to Liu process, renewal process, finite variation process, and multiple Liu processes. This paper presents an uncertain integral of a matrix of uncertain processes with respect to multi-dimensional Liu process, and verifies its linearity property. Then an uncertain differential of a multi-dimensional uncertain process with respect to a multi-dimensional Liu process is defined, and a fundamental theorem is derived. In addition, a concept of multi-dimensional uncertain differential equation is proposed, and solutions of some special types of multi-dimensional uncertain differential equations are given