Looking for the paper that modified BS to include "trading days left" as an input parameter. Any help is welcome.Regards

<t>Hi,There are two popular methods, 1. Discounting Projected Free Cash Flow to the firm2. Multiples comparison (relevant to the industry you are looking at). ie. For Software services (margin range 33%) I will look at Quote/Margin. For Trading Company (Margin -2%), I will look at Quote/Working Cap ...

<t>QuotePhilosophically, it is true that something may be worth something to someone because of the emotion attached to it, but emotion doesn’t have a place in constructing the true economic value of something. There is a place in finance to study indifference pricing, pricing anomalies, etc. but th...

<t>A. if utility theory interests you, you can look at 1. John Cochrane's book on Asset Pricing. 2. Cambell's review of Asset Pricing lit. on NBERMy issue with Utility models is that they assume investment to be a "marginal" "postponment of consumption" (intertemporal consumption) decision. Which ma...

<t>Look for definition of Standard Error, proportional to (estimator_sigma_desired_variate/sqrt(N)). N = number of trials. To improve ur standard error by one decimal point..i.e. 1.3 to .13, you need 100 times more trials. Standard deviation of standard error is propotional to (sigma^2)/N, if that h...

<r>QuoteOriginally posted by: AthleteScholar".. trying to rip off their custumers"... That depends on pricing, isn't so? As I see the pricing is an auction that should demonstrate the "perception"of majority of players. To compensate them for their "perception", the bank need a hedge. I can't think ...

<t>doesn't that make Longstaff algo incomplete? BTW does all single stock American Call Options (including path dependent ones) are the same as European Call Options. Most of the lit being discussed here is on American Put Options, does anybody know of Call Option treatments. Any reference will be a...

<r>Few observations Sofiane4. Inflation targeting by developing countries...hmm that is interesting! Why not growth (which IS their priority) or employment (which makes voters happy- In fact US economy did try natural rate of unemployment as target for sometime in the past 25 years. Some US body has...

Has anybody read the "papers" by this title on the GS website? Any comments on that.

<t>Hi,I am an academic financial researcher in a research centre. I am trained as an Electrical Engineer and then I did my MBA. I have research interest in the area of Asset Pricing (and like many in this area I believe the academia and professionals both are missing something very crucial in this r...