Modern methods for hedging the market risk

The 2008 financial crisis is affecting millions of companies (from small ones up to big corporations) and is one of the hottest topics in all TV deadlines and step by step it starts to be part of our daily reality. The daily reality can be called as “Market instability”: The recent market instability was caused by many factors, chief among them a dramatic change in the ability to create new lines of credit, which dried up the flow of money and slowed new economic growth and the buying and selling of assets. The weapon against market instability is only one and can be defined in generic terms as “Hedge”. In finance, a hedge is a position established in one market in an attempt to offset exposure to the price risk of an equal but opposite obligation or position in another market — usually, but not always, in the context of one's commercial activity. The study presents a set of innovative hedging products that can be built based on the instruments traded by commercial banks allowing the customers to hedge efficiently the underlying risks of adverse movements of market parameters (especially FX rate and interest rates). These structures are also more accessible for customers in relationship with the commercial banks than the instruments traded across different stock exchanges.market risk, hedging, financial crisis, bank, options

Shell Model Description of Normal Parity Bands in Heavy Deformed Nuclei.

The low-energy spectra and electromagnetic transition strengths in 160,162,164Dy, 156,158,160Gd, and 168Er are described in the framework of the pseudo-SU(3) model. The Hamiltonian includes spherical single-particle energies, the Quadrupole-quadrupole interaction, and proton and neutron pairing terms with the strengths of these interaction fixed from systematics. The strengths of an additional four rotor-like terms that are included in the Hamiltonian, which do not mix SU(3) representations and induce only small changes in the spectra, were allowed to vary and a consistent set of these parameters was found. Proton and neutron degrees of freedom are considered explicitly by building the basis states as linear combinations of SU(3) states that are the direct product of SU(3) proton and neutron states with pseudo spin zero. The results show that the proton and neutron single particle energies introduce strong mixing of the SU(3) representations, but nevertheless the dominance of the quadrupole-quadrupole two-body interaction ensures that the SU(3) band-structure is maintained. By and large, the excitation energy of the excited 0+ states is determined by the strength of the single-particle, quadrupole-quadrupole, pairing and C3 interactions. The interaction strength of the J2 term in the Hamiltonian is responsible for fine tuning of the effective moments of inertia. The KJ interaction fixes the K-bands relative to the ground-state. The theoretical normal parity states of the low-energy spectra---states in the ground state, first excited K = 2, and K = 0 bands---were all found to lie very close to their experimental counterparts. The results analyzed extend beyond quantities used in the fitting procedure, including intra- and inter-band B(E2) strengths, the M1 strength distribution of the ground state, and band head energies of the first Kpi = 1 + and Kpi = 4+ bands. In all cases the summed strength of the M1 distribution is in good agreement with the experimental numbers. The results also show that by adding one- and two-body pairing interactions to the Hamiltonian the experimentally observed fragmentation of the M1 strength can be reproduced

EVA – Advanced method for performance evaluation in banks

EVA (Economic Valued Added) is a modern financial measurement tool that determines if a business is earning more than its true cost of capital. Including a cost for the use of equity capital sets EVA apart from more popular measures of bank performance, such as return on assets (ROA), return on equity (ROE), net banking income and the efficiency ratio, which do not consider the cost of equity capital employed. As a result, these measures may suggest a bank is performing well, when in fact it may be diminishing its value to its shareholders. EVA is a tool that focuses on maximizing shareholder wealth. EVA is an appropriate tool for motivation system and in this way it motivates managers to think like owners; and provides a common language within the corporate culture. The EVA application in banks is relatively new (it started to be implemented in U.S. in 1994) and is not as well known as other measures of bank performance. As in the Romanian Banking system this measurement method is not familiar or used, the purpose of this study is to introduce EVA and its advantages compared to other performance indicators and based on this study to try to implement it in one of the Romanian banks.performance measures, EVA, shareholder value, banks, motivation system

Project manager’s pocket guide

Today, organizations are becoming leaner, extra layers of middle managers are requiring specialists from marketing, engineering, accounting, and other departments to work together in ad-hoc project teams. Having no full-time, dedicated managers, these teams are often led by one of these specialists who may excel at his or her specialty, but does not necessarily have management experience. Typically, such team leaders must simultaneously make project contributions in their specialty while they try to manage the project. These “instant” project managers need help defining the project; initiating, planning, executing, and controlling project events; and figuring out how to bring project events to a timely conclusion. And they can't stop working for the many weeks it would take to acquire extensive management training.project, project team, project management, project cycle, project plan, key success indicators, quality, deliverable, deadlines, communication, feedback, scope.

STUDY REGARDING QUALITY FOOD PRODUCTS ON THE ZLATNA MARKETPLACE (ALBA COUNTY)

The present work approaches a few problems related to the quality parameters of the food products starting from the present demands of the market economy. We have included in our study a large range of products that are permanently present market place, in a industrialized area. Some of them are vegetable products like: corn, potatoes, cabbage, carrot, spinach, together with other products. The study results highlight the degree of heavy metals contamination of these goods.vegetable products, heavy metals contaminations

CHALLENGES OF ENVIRONMENTAL ACCOUNTING AND TAXATION IN ROMANIA

Environmental problems that have arisen all over the world are concerning many controversial aspects that were created due to the advance of industrialization in tandem with scientific and technological development. For solving these problems, in the past 40 years many international and national organizations have adopted a substantial and diverse range of environmental measures aimed to improving the quality of the environment. Our research aims to highlight how Romanian authorities face the problems regarding environment. To accomplish our objective we trace two main directions of the study, firstly we conduct an analytical investigation of green accounting regulations and secondly we describe the environmental fiscal policy at national level and their impact on Romanian companies.environment, green accounting, fiscal policy, regulations

WIND ENERGY – ECOSUSTAINABILITY ENGINEERING SOLUTION

Renewables provides increased safety energy supply and limiting imports of energy resources, interms of sustainable economic development. The new requirements for sustainable development have determinedthe world to put the issue of energy production methods and increase the share of energy produced fromrenewable energy. This paper presents the history of wind power, advantages and disadvantages of renewableenergy, particularly wind energy as an alternative source of energy. Windmills can be horizontal axis or verticalaxis Savonius and Darrieus rotor. Latest innovations allow operation of variable speed wind turbines, or turbinespeed control based on wind speed. Wind energy is considered one of the most sustainable choices betweenvariants future wind resources are immense

Investor relations on the internet. An empirical study of Romanian listed companies

Corporate disclosure is critical for the functioning of an efficient capital market (Healy & Palepu, 2001) and investor relations has more and more importance in comunication between company and its investors. In recent years many publicly traded companies use internet as a new channel to inform current and potential investors about their financial performance. In this paper we investigate the extent to which Romanian listed companies use internet for investor relations purposes. To achieve this goal we carried out an investigation of the Romanian companies listed on Bucharest Stock Exchange (BSE) and data from all the listed companies have been collected. The objective of our paper is to identify the stage Romanian listed companies are as regarding the internet advantages they use for disclosing information for their investors. The results suggest that is a poor use of internet advantages for investor relations.investor relations, listed companies, corporate reporting, disclosure, internet.