Frank Milne

TL;DR: A model for interdependent demand for health insurance and health care under uncertainty is developed to throw light on the issue of insurance-induced distortions in thedemand for health care services.

TL;DR: In this article, the European call options are priced when the uncertainty driving the stock price follows the V. G. stochastic process (Madan and Seneta 1990), and the incomplete markets equilibrium change of measure is approximated and identified using the log return mean.

TL;DR: In this paper, the implied equivalent martingale measure density with respect to the reference measure, which in this case is the Black-Scholes geometric Brownian motion model, is derived from S & P 500 options from the Wall Street Journal.

TL;DR: In this article, a simple introduction to contingent claim valuation of risky assets in a discrete time, stochastic interest-rate economy is provided, taking the term structure of interest rates as exogenous, closed-form solutions are derived for European options written on (1) Treasury bills, (2) interest rate forward contracts, (3) interest-term futures contracts,(4) Treasury bonds, (5) interestrate caps, (6) stock options, (7) EAFE contracts, and (8) equity futures contracts.

TL;DR: In this paper, the Cox, Ross and Rubinstein binomial model is generalized to the multinomial case and limits are investigated and shown to yield the Blacks-Scholes formula in the case of continuous sample paths for formula in complete market structures.