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Fully-Functional Succinct Trees
Fully-Functional Succinct Trees

... RAM with word length Θ(log n) in which arithmetic and logical operations on Θ(log n)-bit integers and Θ(log n)-bit memory accesses can be done in constant time. Under this model, there exist many succinct representations of ordinal trees achieving 2n + o(n) bits of space. Basically there exist three ...
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... In the first part of the paper, we develop a theory on a firm's ex ante choice between issuing a callable or non-callable bond, its ex post decisions whether to call back a callable bond, and whether to refund it. On the one hand, our theory explains the existing empirical findings in the current liter ...
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Lattice model (finance)



For other meanings, see lattice model (disambiguation)In finance, a lattice model [1] is a technique applied to the valuation of derivatives, where, because of path dependence in the payoff, 1) a discretized model is required and 2) Monte Carlo methods fail to account for optimal decisions to terminate the derivative by early exercise. For equity options, a typical example would be pricing an American option, where a decision as to option exercise is required at ""all"" times (any time) before and including maturity. A continuous model, on the other hand, such as Black Scholes, would only allow for the valuation of European options, where exercise is on the option's maturity date. For interest rate derivatives lattices are additionally useful in that they address many of the issues encountered with continuous models, such as pull to par.
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