CONTENTS
Preface ...........................................................................................................................................................9
A ..................................................................................................................................................................18
Agency Theory ....................................................................................................................................18
Artificial Neural Networks ...................................................................................................................21
Asset Allocation...................................................................................................................................24
Asset Pricing ........................................................................................................................................26
B...................................................................................................................................................................34
Bankruptcy...........................................................................................................................................34
Banks as Barrier Options ......................................................................................................................38
Bid–Ask Spread ...................................................................................................................................41
Black–Scholes......................................................................................................................................43
C...................................................................................................................................................................45
Capital Adequacy.................................................................................................................................45
Capital Structure ..................................................................................................................................51
Catastrophe Futures and Options ..........................................................................................................55
Commodity Futures Volatility ..............................................................................................................57
Conditional Performance Evaluation ....................................................................................................60
Consolidation .......................................................................................................................................64
Contagion.............................................................................................................................................68
Contingent Claims ...............................................................................................................................70
Convenience Yields ..............................................................................................................................72
Convertibles.........................................................................................................................................78
Corporate Governance ..........................................................................................................................81
Corporate Takeover Language..............................................................................................................85
Cost of Capital .....................................................................................................................................88
D ..................................................................................................................................................................91
Debt Swaps ..........................................................................................................................................91
Deposit Insurance ................................................................................................................................95
Discounted Cash Flow Models ...........................................................................................................100
Disinvestment Decisions.....................................................................................................................103
Dividend Growth Model.....................................................................................................................106
Dividend Policy .................................................................................................................................109
E.................................................................................................................................................................113
Electronic Banking .............................................................................................................................113
Electronic Payments Systems .............................................................................................................120
Embedded Inflation............................................................................................................................124
Ethics in Finance................................................................................................................................127
Eurocredit Markets .............................................................................................................................133
Event Studies .....................................................................................................................................137
Exotic Options ...................................................................................................................................141
Expectations.......................................................................................................................................146
Experimental Asset Markets ...............................................................................................................149
F.................................................................................................................................................................152
Fat Tails in Finance............................................................................................................................152
Financial Distress...............................................................................................................................161
Foreign Exchange Management .........................................................................................................165
Foreign Exchange Markets .................................................................................................................168
Futures and Forwards.........................................................................................................................176
Fuzzy Logic .......................................................................................................................................178
G ................................................................................................................................................................180
Game Theory in Finance.....................................................................................................................180
Growth by Acquisition.......................................................................................................................187
H ................................................................................................................................................................191
Hedging..............................................................................................................................................191
I..................................................................................................................................................................194
Initial Public Offerings (IPOS) ...........................................................................................................194
Insider Trading Law (US)...................................................................................................................198
Insurance............................................................................................................................................200
Insurance Derivatives.........................................................................................................................206
International Initial Public Offerings ..................................................................................................212
Investment Banking ............................................................................................................................216
Iowa Electronic Market.......................................................................................................................219
L.................................................................................................................................................................223
Leasing...............................................................................................................................................223
Log Exponential Option Models.........................................................................................................226
Risk Analysis .....................................................................................................................................306
Rollover Risk .....................................................................................................................................308
S.................................................................................................................................................................311
Scrip Dividend ...................................................................................................................................311
Securitization .....................................................................................................................................313
Share Repurchases ..............................................................................................................................317
Short-Termism...................................................................................................................................319
Sovereign Risk...................................................................................................................................325
Speculation.........................................................................................................................................328
Stability of Returns .............................................................................................................................331
State-Contingent Bank Regulation .....................................................................................................334
Stochastic Processes ...........................................................................................................................337
Stock Market Indices ..........................................................................................................................340
Syndicated Euroloans .........................................................................................................................343
T.................................................................................................................................................................346
Tactical Asset Allocation....................................................................................................................346
Term Structure Models .......................................................................................................................348
Time Series Analysis ..........................................................................................................................357
Transaction Costs...............................................................................................................................359
Transition Economies .........................................................................................................................361
V ................................................................................................................................................................366
Valuing Flexibility.............................................................................................................................366
Venture Capital ..................................................................................................................................370
Volatility ............................................................................................................................................376
Volatility Risk Pricing ........................................................................................................................381
Volatility Smile..................................................................................................................................384
W ...............................................................................................................................................................387
Warrants.............................................................................................................................................387
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