Parimutuel Applications in Finance : New Markets for New Risks
2007 ed.
Book Details
Format
Hardback or Cased Book
Book Series
Finance and Capital Markets Series
ISBN-10
1403939500
ISBN-13
9781403939500
Edition
2007 ed.
Publisher
Palgrave USA
Imprint
Palgrave Macmillan
Country of Manufacture
GB
Country of Publication
GB
Publication Date
Nov 28th, 2006
Print length
278 Pages
Weight
622 grams
Dimensions
16.40 x 24.10 x 1.90 cms
Product Classification:
FinanceFinance and the finance industry
Ksh 32,400.00
Werezi Extended Catalogue
0 in stock
Delivery Location
Delivery fee: Select location
Secure
Quality
Fast
Financial intermediaries typically offer derivatives to their customers only when they can hedge the exposures from these transactions. Baron and Lange show that parimutuel auctions can be used by financial intermediaries to offer derivatives without exposing themselves to risk.
Financial intermediaries supply derivatives to their customers when they can hedge the exposures from these transactions. A static hedge is typically employed by arranging an offsetting transaction with a different customer or a dynamic hedge by trading in the underlying derivatives. There is however a broad range of uncertain exposures where intermediaries tend not to offer derivatives or risk management products, as they are unable to hedge the resulting exposures. Baron and Lange suggest a parimutuel auction system adapted from the betting industry as a solution to this problem. They introduce the parimutuel mechanism and the modifications required to apply the mechanism to the capital markets. The PDCA auction and its mechanics are analyzed and finally the mathematics behind the system are described and illustrated. Includes a forward by Robert J. Shiller, the Stanley B. Resor Professor of Economics, Yale University
Get Parimutuel Applications in Finance by at the best price and quality guaranteed only at Werezi Africa's largest book ecommerce store. The book was published by Palgrave USA and it has pages.
