Binomial and Black and Scholes Pricing models Essay Example for Free

Binomial and Black and Scholes Pricing models Essay The binomial and the Black and Schole models are option valuing models, the Binomial model involves determining the value of options using a tree like format whereby the value of the option is determined by the expiration time period of the option and volatility, for the Black and Schole model the value of options is determined by simply getting a derivative that helps get the discount rates of options. Binomial pricing model: The binomial pricing model was introduced by Ross, Cox and Rubinstein in 1979; it provides a numerical method, in which valuation of options can be undertaken. Application: This model breaks down the option into many potential outcomes during the time period of the option, this steps form a tree like format where by the model assumes that the value of the option will rise or go down, this value is calculated and it is determined by the expiration time and volatility. Finally at the end of the tree of the option the final possible value is determined because the value is equal to the intrinsic value. Assumptions: †¢ The model also assumes that the market is efficient in that people cannot predict the direction of change in the stock prices. †¢ The interest rates are constant and known and therefore they do not change in the time we consider an option. †¢ The model assumes that there are no dividends paid during the period in which one considers the option. †¢ The model assumes that the returns on the stocks are normally distributed. †¢ It also assumes that no commission is paid when buying or selling stock. Binomial and Black and Scholes Pricing models. (2016, Aug 11).

Multiculturalism in Democratic European Countries Essay

Multiculturalism in Democratic European Countries - Essay Example Managing diversity in democratic European countries has several issues to address. Similar to Africa, Europe is not a monumental space. It is a rich and abundant continent occasionally divided by history into several fragments, languages, and cultures. Furthermore, similar to African societies, European democratic societies, in their distant past or recent history, have been faced by the same concern: discovering the most suitable form of government to guarantee respect for minority rights, at the same time as supporting the determination to live together. The implementation of democracy and legitimacy as ideals rising above multiculturalism, the execution of protection systems for minorities and regionalization and decentralization strategies have aided in addressing the concern, mitigate conflicts and build an established and secure Europe. However, there is still some form of tension that persists in Europe and there is still development to be initiated in particular democratic so cieties where groups continue to experience discrimination in education, employment, and housing (Kymlicka 2001). The concern of diversity management emerges increasingly in terms of the assimilation of migrants. Democratic European countries have had various experiences in the issue, frequently affected by the manner in which these societies themselves were established as nations. It can be noted that the boundary between these various models is not, though, watertight. Beyond the various frameworks, the same problems continue everywhere in terms of the assimilation of migrants into public economic life. The outcome is that numerous of the youth descending from immigrants have more and more problematic in acknowledging a life of social, educational and professional failure. There is hence an urgent necessity to form the appropriate conditions for migrants to break out from a social life constricted to the boundaries of ethnic communities and have access to an opportunity of genuine participation in the life of democratic European societies (Lisbon Forum 2005).  Ã‚  

Descriptive Statistics. Dearborn Park Essay Example | Topics and Well Written Essays - 1500 words

Descriptive Statistics. Dearborn Park - Essay Example While quantitative methods primarily apply systematic approaches that involve numerical data manipulation, qualitative techniques use a different approach which is largely ethnographic and involves description and explanation of findings (Beebe, 2012). Quantitative methods of data collection and analysis have been given greater weight in this study with descriptive statistics being allocated a central role in trying to analyze and explain the findings of the study. Sampling techniques used According to Beebe (2012), a statistical sample of any given population can be tested through quantitative techniques to provide answers to research questions or to test hypotheses. This study was carried out by sampling the population for the purpose of coming up with quality research findings covering a manageable area and population. Dearborn Park was used as a case study to determine the social and physical benefits of parks and recreation as well as important factors affecting them. For this r eason there was no sampling per se as the population of the park was considered as a whole. Basically this was made possible by the fact that the data for the park is available on the internet through various websites. All the other features and properties of the park that form part of the data collected were collected from the entirety of the park and thus no part thereof was sampled as a representative. Data collection and instruments used In this research, three main methods of data collection were applied; observation, telephony and search from the internet. Observation was carried out by the researcher visiting the area and recording all relevant information and data that could be observed with the help of park guides. The information collected through observation mainly included park activities, the general settings and environment of the settlement, demographic and other similar information; the researcher visited the park twice, once during the weekdays and once during the w eekend so as to get the contrast between those two periods in terms of residential activities. Telephony was applied when additional information was needed about the park both before the visit and after. The researcher basically called the park manager and asked any relevant questions related to the study. The researcher especially called the manager to get information about the size of playground, tennis court, open fields of the park. The final and most productive source of data for the study was the internet. Most of the quantitative data for the park was obtained from various websites dealing with recreational parks in the USA. Information about parks and their demographics was obtained from websites with park data, other specific information about issues related to the parks such as health and crime was obtained from websites dealing with the specific issues in relation to estates. Search Strategy For data to be gathered from websites, a good search strategy targeting the most relevant websites was required so as to get quality information. The search strategy included identification of the main key words related to the topic of study and Dearborn Park. Some of the main phrases used included ‘Dearborn Park LA’, ‘Dearborn Park statistic’, and ‘Dearborn Park LA characteristics’. Databases searched included OARE, EBSCO HOST and MEDLINE. Findings The tables below present the data findings of the study. Each of the tables presents