spotlight europe 2010/10, November 2010: The Middle East as a region of opportunity

The Middle East is more than a hotbed of conflict, war and terror. It is time the EU woke up to the opportunities this region has to offer. The four Es - economy, energy, environment and education-suggest numerous areas of cooperation in which Europe can become profitably involved. Furthermore, the six GCC states ought to play a greater role in the resolution of regional conflict

On the probability density function of baskets

The state price density of a basket, even under uncorrelated Black-Scholes dynamics, does not allow for a closed from density. (This may be rephrased as statement on the sum of lognormals and is especially annoying for such are used most frequently in Financial and Actuarial Mathematics.) In this note we discuss short time and small volatility expansions, respectively. The method works for general multi-factor models with correlations and leads to the analysis of a system of ordinary (Hamiltonian) differential equations. Surprisingly perhaps, even in two asset Black-Scholes situation (with its flat geometry), the expansion can degenerate at a critical (basket) strike level; a phenomena which seems to have gone unnoticed in the literature to date. Explicit computations relate this to a phase transition from a unique to more than one "most-likely" paths (along which the diffusion, if suitably conditioned, concentrates in the afore-mentioned regimes). This also provides a (quantifiable) understanding of how precisely a presently out-of-money basket option may still end up in-the-money.Comment: Appeared in: Large Deviations and Asymptotic Methods in Finance, Springer proceedings in Mathematics & Statistics, Editors: Friz, P.K., Gatheral, J., Gulisashvili, A., Jacquier, A., Teichmann, J., 2015, with minor typos remove

The structural developments of regional television in Britain and Germany

This paper compares the structural developments of regional television in Britain and Germany from the early days of broadcasting to the present from an institutional and organisational perspective. Drawing on a series of interviews with policy-makers and other key personalities, it is argued that the combination of political administrative borders and regional television boundaries, as exists in the German Länder, provides a fruitful basis for a strong regional television service. During the post-war period divergences between Länder borders and Consortium of Public-Law Broadcasting Institutions of the Federal Republic of Germany (ARD) broadcasting boundaries, palpably manifest in south-west Germany, have been harmonised, leading to thorough conformity. However, in centralised England questions of regionalism have strangely played such an important role in the evolution of television, and there are evident disjunctures between regional boundaries and television regions. This applies to the regional structure of Independent Television (ITV) as well as to the regional initiatives of the BBC, which, since the mid-1980s, increasingly takes over ITV's regional duties, fulfilling primarily political demands