ASPECTS REGARDING THE INFLUENCE OF VOLATILITY ON THE OPTION’S PRICE

The most important advantage of the option transactions resides in the fact that it offers, through the existing relations between the derivatives market and the spot market, improved solutions of portfolio management, the put options constituting an insurance policy against the decrease of the prices, and the call options acting as a guarantee for the purchase of the support asset at the pre-set price. The volatility represents a measure of the size of the price fluctuations of the support asset and thus it can be assimilated with a random variable. The analysis of the essential factors that influence the price of the option contracts has demonstrated that the volatility of the support asset's price shows how risky it is for it to be one of the main and most difficult to determine factor, because this is the only parameter that is not known exactly at the moment of the contract conclusion. Under these conditions, due to the profound importance of volatility in the option evaluation and due to the fact that volatility is difficult to estimate, observe or predict, we must model it as a random variable for many of the option contracts for which the model of constant volatility (as the Black Scholes model is) is inadequate..options contract, historical volatility, stochastic volatility, exercise price,standard deviation

THE FINANCIAL MANAGEMENT OF THE SMALL AND MEDIUM SIZED COMPANIES IN ROMANIA

The objective of the paper is to identify the possibilities and promotion limits of the financial management in the small and medium sized companies in Romania starting from the concepts expressed in the literature and expressed in the concrete situations in the Romanian economy practice. We have also presented the role of the financial management in small and medium sized companies and the risk management objective of financial management considering that the risk is a fundamental component of a strategic and tactical decision. At the end of the paper we have presented the conclusions stemming from the study, the basic one being that there is a beginning in the promotion and applicability of theoretical elements of financial management in small and medium sized companies in Romania together with the European integration.small and medium sized companies, financial management, investment, risk, economic profitability

Spin phase diagram of the nu_e=4/11 composite fermion liquid

Spin polarization of the "second generation" nu_e=4/11 fractional quantum Hall state (corresponding to an incompressible liquid in a one-third-filled composite fermion Landau level) is studied by exact diagonalization. Spin phase diagram is determined for GaAs structures of different width and electron concentration. Transition between the polarized and partially unpolarized states with distinct composite fermion correlations is predicted for realistic parameters.Comment: 5 pages, 3 figure

Newborns' preference for face-relevant stimuli: effects of contrast polarity

There is currently no agreement as to how specific or general are the mechanisms underlying newborns' face preferences. We address this issue by manipulating the contrast polarity of schematic and naturalistic face-related images and assessing the preferences of newborns. We find that for both schematic and naturalistic face images, the contrast polarity is important. Newborns did not show a preference for an upright face-related image unless it was composed of darker areas around the eyes and mouth. This result is consistent with either sensitivity to the shadowed areas of a face with overhead (natural) illumination and/or to the detection of eye contact