Risk preference based option pricing in a fractional Brownian market

We focus on a preference based approach when pricing options in a market driven by fractional Brownian motion. Within this framework we derive formulae for fractional European options using the traditional idea of conditional expectation. The obtained formulae - as well as further results - accord with classical Brownian theory and con?rm economic intuition towards fractional Brownian motion. Furthermore the in?uence of the Hurst parameter H on the price of a European option will be analyzed. --Fractional Brownian motion,Conditional expectation,Risk preference based option pricing,Fractional option pricing,Fractional Greeks

Bundling without Price Discrimination

This paper examines the optimal bundling strategies of a multiproduct monopoly in markets in which a seller cannot monitor and thereby restrict the purchases of buyers to a single bundle, while buyers have resale opportunities. In such markets, the standard mechanism through which bundling increases seller profits, based on price discrimination, is not feasible. The profit-maximizing bundling strategy is characterized, given the restrictions on pricing policies resulting from resale and a lack of monitoring. The welfare implications of optimal bundling are analyzed.Bundling ; Pricing ; Revenue Maximization ; Product Design JEL Codes: D42 ; L12

Emotional and attentional predictors of self-regulation in early childhood

The development of self-regulation in early childhood is related to development of emotional regulation and attention, in particular executive attention (Feldman, 2009; Posner & Rothbart, 1998). As the ability to self-regulate is crucial in life (Casey et al., 2011), it is important to reveal early predictors of self-regulation. The aim of the paper is to present the results of longitudinal studies on the relationships between the functioning of attention, regulation of emotion and later self-regulatory abilities. 310 children were assessed at three time points. At 12 months of age emotional regulation in situation of frustration and attention regulation were assessed. At 18 and 24 months behavioral-emotional regulation in the Snack Delay Task was measured. Additionally parents assessed executive attention using The Early Childhood Behavior Questionnaire when children were 26 months old. Structural equation modelling revealed two different paths to development of self-regulatory abilities at 18 months: emotional (reactive system) and emotionalattentional and only one emotional-attentional path at 24 months. The early ability to focus attention and later executive attention functioning revealed to be important predictors of self-regulatory abilities both at 18 and 24 months of age

Decadal-centennial scale monsoon variations in the Arabian Sea during the Early Holocene

An essential prerequisite for the prediction of future climate change due to anthropogenic input is an understanding of the natural processes that control Earth's climate on timescales comparable to human-lifespan. The Early Holocene period was chosen to study the natural climate variability in a warm interval when solar insolation was at its maximum. The monsoonal system of the Tropics is highly sensitive to seasonal variations in solar insolation, and consequently marine sediments from the region are a potential monitor of past climate change. Here we show that during the Early Holocene period rapid