Option Pricing beyond Black-Scholes Model: Quantum Mechanics Approach

Based on the analog between the stochastic dynamics and quantum harmonic oscillator, we propose a market force driving model to generalize the Black-Scholes model in finance market. We give new schemes of option pricing, in which we can take various unexpected market behaviors into account to modify the option pricing. As examples, we present several market forces to analyze their effects on the option pricing. These results provide us two practical applications. One is to be used as a new scheme of option pricing when we can predict some hidden market forces or behaviors emerging. The other implies the existence of some risk premium when some unexpected forces emerge

A Dynamic Competition Control Strategy for Freeway Merging Region Balancing Individual Behaviour and Traffic Efficiency

An integrated control strategy is considered in this paper with the aim of solving congestion in freeway merging regions during peak hours. Merging regions discussed in this paper include the mainline and on-ramp. Traditional research mainly focuses on the efficiency of traffic, ignoring the experience of on-ramp drivers and passengers. Accordingly, a dynamic competition control strategy is proposed to balance individual behaviour and traffic efficiency. First, the concept of the congestion index is introduced, which is expressed by the queue length and the speed parameter of the merging region. The congestion index is used to balance the priorities of the vehicles from the mainline and on-ramp into the merging region in order to avoid poor individual behaviour of on-ramp drivers due to the long-time waiting. Additionally, a nonlinear optimal control approach integrating variable speed limits control and ramp metering is proposed to minimize the total time spent and the maximum traffic flow. The integrated control approach proposed in this paper is tested by simulation which is calibrated using field data. The results indicate that the integrated control approach can effectively shorten the total delay and enhance the traffic service level.</p

Exploration of interactive classroom test method in universities based on the module thought

University is an important transit station for students to enter social life, undertaking the important mission of personnel training. Nowadays, a series of challenges exists in university education, such as the popularity of electronic information making students lack the ability to help each other. How to develop the mutual cooperation ability and active learning ability is an important topic in university education. This paper proposes an interactive classroom test method considering the learning characteristics of university students. The module thought is introduced to optimize the teaching system and help teachers to master classroom. In the interactive classroom test method, students can design the test paper based on the learning of course content and understanding. Then the different module group may use and review these test papers. The application and investigation of the proposed method are given by concrete practice. The results show that this method can enhance the spirit of teamwork and competition among students

CTM Based Real-Time Queue Length Estimation at Signalized Intersection

Queue length is an important index of the efficiency of urban transport system. The traditional approaches seem insufficient for the estimation of the queue length when the traffic state fluctuates greatly. In this paper, the problem is solved by introducing the Cell Transmission Model, a macroscopic traffic flow, to describe the vehicles aggregation and discharging process at a signalized intersection. To apply the model to urban traffic appropriately, some of its rules were improved accordingly. Besides, we can estimate the density of each cell of the road in a short time interval. We, first, identify the cell, where the tail of the queue is located. Then, we calculate the exact location of the rear of the queue. The models are evaluated by comparing the estimated maximum queue length and average queue length with the results of simulation calibrated by field data and testing of queue tail trajectories. The results show that the proposed model can estimate the maximum and average queue length, as well as the real-time queue length with satisfactory accuracy

Construction of Ideological and Political Mixed Teaching in Higher Education under the Digital Transformation

This article focuses on the current demands for reform in ideological and political education in higher education, within the context of the digital information and communication era. Specifically, it proposes a plan for integrating ideological and political education into higher education courses using the widely-used blended learning mode in a digitally transformed environment. This plan aims to leverage digital teaching methods, such as the development of multimedia courseware, to enrich classroom teaching content, increase student engagement and learning outcomes, deepen students\u27 understanding and awareness, and enable them to effectively absorb a wealth of information in a limited time. By subtly linking the process of learning professional knowledge with their personal, social, and national development, this plan seeks to foster a professional education philosophy that cultivates "socialist successors.

Impact of Guideline Markings on Saturation Flow Rate at Signalized Intersections

Many intersections around the world are irregular crossings where the approach and exit lanes are offset or the two roads cross at oblique angles. These irregular intersections often confuse drivers and greatly affect operational efficiency. Although guideline markings are recommended in many design manuals and codes on traffic signs and markings to address these problems, the effectiveness and application conditions are ambiguous. The research goal was to analyze the impact of guideline markings on the saturation flow rate at signalized intersections. An adjustment estimation model was established based on field data collected at 33 intersections in Shanghai, China. The proposed model was validated using a before–after case study. The underlying reasons for the impact of intersection guideline markings on the saturation flow rate are discussed. The results reveal that the improvement in the saturation flow rate obtained from painting guide line markings is positively correlated with the number of traffic lanes, offset of through movement, and turning angle of left-turns. On average, improvements of 7.0% and 10.3% can be obtained for through and left-turn movements, respectively. Document type: Articl

Multiobjective Optimal Formulations for Bus Fleet Size of Public Transit under Headway-Based Holding Control

In recent years, with the development of advanced technologies for data collection, real-time bus control strategies have been implemented to improve the daily operation of transit systems, especially headway-based holding control which is a proven strategy to reduce bus bunching and improve service reliability for high-frequency bus routes, with the concept of regulating headways between successive buses. This hot topic has inspired the reconsideration of the traditional issue of fleet size optimization and the integrated bus holding control strategy. The traditional headway-based control method only focused on the regulation of bus headways, without considering the number of buses on the route. The number of buses is usually assumed as a given in advance and the task of the control method is to regulate the headways between successive buses. They did not consider the bus fleet size problem integrated with headway-based holding control method. Therefore, this work has presented a set of optimal control formulations to minimize the costs for the passengers and the bus company through calculating the optimal number of buses and the dynamic holding time, taking into account the randomness of passenger arrivals. A set of equations were formulated to obtain the operation of the buses with headway-based holding control or the schedule-based control method. The objective was to minimize the total cost for the passengers and the bus company in the system, and a Monte Carlo simulation based solution method was subsequently designed to solve the optimization model. The effects of this optimization method were tested under different operational settings. A comparison of the total costs was conducted between the headway-based holding control and the schedule-based holding control. It was found that the model was capable of reducing the costs of the bus company and passengers through utilizing headway-based bus holding control combined with optimization of the bus fleet size. The proposed optimization model could minimize the number of buses on the route for a guaranteed service level, alleviating the problem of redundant bus fleet sizes caused by bus bunching in the traditional schedule-based control method. Document type: Articl

Design of Integrated Limited-Stop and Short-Turn Services for a Bus Route

As a major choice for daily travel, public transit plays an important role in transporting passengers, thus relieving congestion on urban transit routes. In high-demand bus networks, urban transit demand presents imbalance of use of urban bus corridors. The demand patterns in both directions are asymmetric. In this paper, we develop a model which calculates the network and transportation costs in terms of wait time, in-vehicle travel time, and operator costs. We propose an integrated strategy, with an integrated limited-stop and short-turn line, by adjusting a variety of frequencies to meet the unbalanced and asymmetric demand. To minimize these costs, a model with a genetic algorithm can determine frequencies and the proper stations which can be skipped, as well as where turning back can occur, given an origin-destination trip matrix. Numerical examples are optimized to test the availability of an integrated service by minimizing the objective function, and the results are analyzed. Our results show that integrated service patterns can be adjusted to meet the demand under different conditions. In addition, the optimized schemes of an integrated service and the frequencies derived from the model can significantly reduce total cost