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A Yen is not a Yen: TIBOR/LIBOR and the `Japan Premium`
A Yen is not a Yen: TIBOR/LIBOR and the `Japan Premium`

... times. This intraday split between lower-credit-rated Japanese banks and higher-creditrated banks of other time zones created spurious statistical effects of high absolute values of returns (changes in interest rate levels) over 12 hour time intervals and strong negative autocorrelation of returns a ...
PDF
PDF

... of the transition as well as the character of the economy along the way, including the costs of inequality. Within our focus here on an agrarian economy, we offer methods that go some distance towards answering Atkinson’s (1997) call for economics to fully address the dynamics of income distributio ...
continued
continued

...  A node contains two references (to left and right child nodes)  A node contains a data field  The data field has type Comparable, so that you can compare the values in order to place them in the correct position in the binary search tree ...
Reducing bonds? Proceed with caution
Reducing bonds? Proceed with caution

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Chapter 9

Policy Rate, Mortgage Rate and Housing Prices
Policy Rate, Mortgage Rate and Housing Prices

... borrowing, and the short end of the yield curve, with market rates for longer maturities being impacted by the standard set of factors that influence the yield curve. The OCR is subject to review 8 times a year, although on one occasion (19 September 2001), it was changed at other than a scheduled ...
Counterparty A
Counterparty A

Online Appendix: Payoff Diagrams for Futures and Options
Online Appendix: Payoff Diagrams for Futures and Options

... Writing a put is the reverse of buying one. Again, the writer loses when the holder gains, so the maximum payoff is the premium. The best outcome for an option writer is to have the option expire worthless, so that it is never exercised. Looking at Figure 9A.6, we can see that the put writer’s losse ...
ESTIMATION OF VALUE AT RISK: EXTREME VALUE AND
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CS235102 Data Structures - National Chi Nan University
CS235102 Data Structures - National Chi Nan University

... Binary Trees (4/9)  Properties of binary trees  Lemma 5.1 [Maximum number of nodes]: 1. The maximum number of nodes on level i of a binary tree is 2i-1, i 1. 2. The maximum number of nodes in a binary tree of depth k is 2k-1, k1.  Lemma 5.2 [Relation between number of leaf nodes and degree-2 n ...
Open full article - Acta Universitatis
Open full article - Acta Universitatis

... under certainty, or uncertainty. The decision making under uncertainty is much more frequent because of rapidly changing macroeconomic and microeconomic conditions. But in most cases, there is possible to quantify the uncertainty, because there are available future trends with their probabilities of ...
Powerpoint Slides
Powerpoint Slides

... Vectors put values in successive indexes » addElement is used to put initial values in a vector » new values can be added only at the next higher index ...
continued
continued

...  A node contains two references (to left and right child nodes)  A node contains a data field  The data field has type Comparable, so that you can compare the values in order to place them in the correct position in the binary search tree ...
Lecture7AGPrint - School of Computer Science
Lecture7AGPrint - School of Computer Science

...  We expect the find and insert operations to take O(log N) time.  In fact, operations like find take time d, where d is the depth of the item in the tree.  Since the depth is not expected to be larger than log(N), and each step ...
cash - Initial Set Up
cash - Initial Set Up

... interest expense. Interest expense is incurred on liabilities because of the time value of money. To calculate interest three important variables must be considered. (1) the principal; (2) the rate ; and (3) duration or time period Interest = Principal x Rate x Time ...
Optimal Input Trade Policy Under Economic Xuan Liu
Optimal Input Trade Policy Under Economic Xuan Liu

... intermediate inputs. In line with those closely related papers, our model considers financial frictions and three types of shocks, temporary productivity shocks, world interest rate shocks, and country spread shocks. Both country spread shocks and financial frictions have been argued as important cont ...
Time and location: COS 226 Midterm Review Fall 2015
Time and location: COS 226 Midterm Review Fall 2015

... array. Need to guarantee amortized constant performance – Insert(Item item) – delete() Solution: Any resizable array would do. To delete a random item, just swap with the last one and delete. All can now be done in amortized constant time ...
On the Redistributive Effects of Government Bailouts in the Mortgage
On the Redistributive Effects of Government Bailouts in the Mortgage

... in the U.S. mortgage market. We construct a model with aggregate risk in which competitive financial intermediaries issue mortgages to households that can default on their debt. Default probabilities are priced into mortgage interest rates unless a government bailout guarantee makes the lenders whol ...
CGZ CGF CGB
CGZ CGF CGB

... The Government of Canada first issued bonds to the public in the 1940s to subsidize the war effort. These “Victory Bonds” have since matured, and their principal repaid. However, financing the ongoing fiscal requirements of the Government of Canada has required continuous issuances of bonds. The Ban ...
Uncertainty Outside and Inside Economic Models * Prize Lecture, December 8, 2013
Uncertainty Outside and Inside Economic Models * Prize Lecture, December 8, 2013

... Uncertainty Outside and Inside Economic Models399 macroeconomic random outcomes to be discounted differently. Moreover, the compounding of stochastic discount factors shows how market compensations change with the investment horizon. Stochastic discount factors thus provide a convenient vehicle fo ...
Succinct Data Structures - the David R. Cheriton School of Computer
Succinct Data Structures - the David R. Cheriton School of Computer

... Succinct Representations of Trees Start with Jacobson, then others: There are about 4n/(πn)3/2 ordered rooted trees, and same number of binary trees Lower bound on specifying is about 2n bits What are the natural representations? ...
ch3-linked list
ch3-linked list

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1. Define tree? root Trees are non-liner data structure, which is used

... In a right threaded binary tree each null right link is replaced by a special link to the successor of that node under inorder traversal,called a right thread. In a left threaded binary tree,each null left link is replaced by a special link to the predecessor of the node under inorder traversal call ...
1 Dynamic graph algorithms 2 Dynamic connectivity
1 Dynamic graph algorithms 2 Dynamic connectivity

... Given an undirected graph G = (V, E), the dynamic connectivity problem is to maintain a graph data structure under edge insertions and deletions in order to efficiently query G to determine whether or not u and v are in the same connected component. More formally, we want to support the following op ...
optimizing algorithm using breadth first search manner
optimizing algorithm using breadth first search manner

... Now we have an initialized connectivity grid. When we want to move from grid position (x, y) we can either move up, down, left or right. When we want to move up for example, we simply check the grid position in (x, y-1) to see if it is true or false. If the grid position is false, we can move there, ...
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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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