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

Metacognizione, attenzione e intelligenza emotiva: uno studio sperimentale

Il tema dell'intelligenza emotiva è piuttosto attuale e dibattuto all'interno del panorama scientifico della psicologia moderna. In generale, c'è unanimità nel definire l'intelligenza emotiva come la capacità di riconoscere le emozioni proprie e altrui in modo da poter strutturare e regolare adeguate relazioni sociali

A Comment on Junction and Energy Conditions in Thin Shells

This comment contains a suggestion for a slight modification of Israel's covariant formulation of junction conditions between two spacetimes, placing both sides on equal footing with normals having uniquely defined orientations. The signs of mass energy densities in thin shells at the junction depend not only on the orientations of the normals and it is useful therefore to discuss the sign separately. Calculations gain in clarity by not choosing the orientations in advance. Simple examples illustrate our point and complete previous classifications of spherical thin shells in spherically symmetric spacetimes relevant to cosmology.Comment: (Tex file + PS file with a figure) Tex errors were correcte

Dysthyroid optic neuropathy: update on pathogenesis, diagnosis, and management

INTRODUCTION: Dysthyroid optic neuropathy (DON) is a severe manifestation of thyroid eye disease (TED) that can result in permanent vision loss. Management is complex, multidisciplinary, and involves medical and/or surgical therapies. This review describes current concepts in the epidemiology, pathophysiology, diagnosis, and treatment of DON. AREAS COVERED: An extensive review of the literature was performed to detail current concepts on the diagnosis and management of DON. This includes utilization of various medical and surgical modalities for disease management. EXPERT COMMENTARY: DON can result in permanent blindness and often requires the use of corticosteroids and surgical decompression. We favor the use of intravenous corticosteroids and a transcaruncular approach when surgical decompression is indicated. The use of orbital radiation for DON is often reserved for patients that are poor surgical candidates and/or patients with refractory disease

Galerkin Method in the Gravitational Collapse: a Dynamical System Approach

We study the general dynamics of the spherically symmetric gravitational collapse of a massless scalar field. We apply the Galerkin projection method to transform a system of partial differential equations into a set of ordinary differential equations for modal coefficients, after a convenient truncation procedure, largely applied to problems of turbulence. In the present case, we have generated a finite dynamical system that reproduces the essential features of the dynamics of the gravitational collapse, even for a lower order of truncation. Each initial condition in the space of modal coefficients corresponds to a well definite spatial distribution of scalar field. Numerical experiments with the dynamical system show that depending on the strength of the scalar field packet, the formation of black-holes or the dispersion of the scalar field leaving behind flat spacetime are the two main outcomes. We also found numerical evidence that between both asymptotic states, there is a critical solution represented by a limit cycle in the modal space with period $\Delta u \approx 3.55$.Comment: 9 pages, revtex4, 10 ps figures; Phys. Rev. D, in pres

Corporate Hierarchies and the Size of Nations: Theory and Evidence

Corporate organization varies within a country and across countries with country size. The paper starts by establishing some facts about corporate organization based on unique data of 660 Austrian and German corporations. The larger country (Germany) has larger firms with flatter more decentral corporate hierarchies compared to the smaller country (Austria). Firms in the larger country change their organization less fast than firms in the smaller country. Over time firms have been introducing less hierarchical organizations by delegating power to lower levels of the corporation. We develop a theory which explains these facts and which links these features to the trade environment that countries and firms face. We introduce firms with internal hierarchies in a Krugman (1980) model of trade. We show that international trade and the toughness of competition in international markets induce a power struggle in firms which eventually leads to decentralized corporate hierarchies. We offer econometric evidence which is consistent with the models predictions