Abstract The writer of this paper defines a derivative as a contract that specifies the rights and obligations between the issuer of the security and the holder, to receive or deliver future cash flows based on some future event. This paper examines the various uses for derivatives which are standardized much the same as stock futures and traded through a securities exchange or futures exchange. This paper discusses the use of derivative securities as a tool to transfer risk. For example, a business can sell futures contracts on a product to a buyer, even before that particular item hits the shelf. The writer cites the various types of derivative options, such as the swap and the forward contract, which is an agreement between two parties to buy or sell a particular asset. A swap is an agreement in which, generally two, parties agree to exchange future cash flows, arising from financial instruments. This paper details how forward contracts are implemented in the corporate business world, as was the case with Lufthansa, who contracted with Boeing to purchase aircraft in the mid-1980s. This paper delves into the process known as financial engineering, which combines options and other derivatives while at the same time controlling the risk in a given transaction. This paper also discusses how derivatives are used as an option in tax planning.
From the Paper "A common use of options for tax planing involves the deferrment of a gain from one period to another, thereby delaying the payment of taxes. For example, one company may have an investment in another company's stock that has appreciated. Company A would like to lock in the gain on Company B's stock, but does not wish to recognize the gain in the current year. It can accomplish this by using put options. This strategy would involve buying put options at the current stock price, expiring in the next fiscal year. If the stock price declines, the value of the option would increase, locking in the profit. Another strategy would be to sell a call option at the current market price. This would also lock in the gain, as any decrease in the price of the stock would be offset the increased value of the option. These strategies can also be used to reduce the risk of a drop in the stock price without regard to tax issues."
Abstract This paper explains that Daniel Bernoulli used his analytical skills across a broad range of scientific disciplines including probability, hydrodynamics, the flow of blood and blood pressure and Riccati's differential equations. The author points out that Daniel Bernoulli improved mathematical physics with his recognition of many of Newton's theories and his utilization of the more powerful calculus of Leibniz. The paper relates that Bernoulli's mathematical explanation of the behavior of gas led to Boyle's law.
Table of Contents
Introduction
Bernoulli's Contributions to Mathematics
Effect of Bernoulli's Work on Today's World
From the Paper "Aerodynamics is a subdivision of fluid mechanics that deals with the motion of air and other gaseous fluids, and with the forces acting on bodies in motion relative to such fluids. Some of the examples of aerodynamic actions are: the movement of an aircraft through the air, the wind forces applied on a structure and the working of a windmill. Daniel Bernoulli's principle is the main law dictating the motion of fluids, which links an increase in flow velocity to a decrease in pressure. For instance, for the same quantity of air at the entry to the venturi tube below to flow through the restriction in the middle, the air must accelerate."
Abstract This paper studies how graduate students perceive the study of statistics and the impact that their anxiety about the subject matter has on their overall performance. The paper cites several research studies which indicate that statistics anxiety is quite high. Furthermore, the paper proves that this anxiety significantly erodes the overall quality and level of the students' research projects. The paper then offers suggestions to improve the teaching of statistics, as well as other suggestions to strengthen students' skills at statistical analysis.
From the Paper "Statistics anxiety has been defined simply as anxiety that occurs as a result of encountering statistics in any form and at any level (Onwuegbuzie, DaRos, & Ryan, 1997), and has been found to negatively affect learning (Onwuegbuzie & Seaman, 1995). Many researchers (Lazar, 1990; Lalonde & Gardner, 1993; Onwuegbuzie, 2000b) suggested that learning statistics is as difficult as learning a foreign language. On the other hand, statistics anxiety sometimes is not necessarily due to the lack of training or insufficient skills, but due to the misperception about statistics and negative experiences in a statistical class. For instance, students often think they do not have enough mathematics training so that they cannot do well in statistical classes. With fear of failing the course, they delay enrolling in statistics courses as long as possible, which often leads to failure to complete their degree programs (Onwuegbuzie, 1997). The lack of self-efficacy and higher anxiety in statistics keep many students away from engaging in research work or further to pursue an academic career. Therefore, statistics becomes one of the most anxiety-inducing courses in their programs of study (Blalock, 1987; Caine, Centa, Doroff, Horowitz, & Wisenbaker, 1978; Schacht & Stewart, 1990; Zeidner, 1991)."
Abstract This paper explains that the Black-Scholes method is a very famous method for the valuation of an equity share and other variables related to the value of an equity share in the future months. The author points out that the key characteristics needed for the Black-Scholes formula are the price and price volatility of the underlying stock, coupled with the available rate of return on a risk free stock, under the assumption that trading in the concerned stock, along with the ability for exercise of the option, is continuous and unrestricted. The paper relates that credit derivatives are mechanisms for the credit institutions to separate the credit risk from their loans and treat market risk as a separate category so that their pricing efficiency could be more competitive and the concerned organizations could be more competitive in the market.
From the Paper "One can even buy securities at low prices on a forward basis. Generally, these are used in a manner similar to bonds which have a benchmark of comparable maturity. Thus, a bank may buy from an investor an option on the credit spread of a BBB-rated corporate bond which has a maturity after 5 years. For this, a premium will have to be paid. At the same time, the bank will have the right to sell the bond to the investor at a certain strike price. This strike price is in terms of a difference with treasury notes, and if the actual spread on the date of maturity of the deal, is more than the strike rate specified, then the option will not be used. If the actual difference is higher, then the bond may be purchased."
Abstract This paper describes the goals and objectives of a series of conferences between the Vatican and leading scientists on questions of Infinity. The paper examines the theological issues involved Infinity.
From the Paper "The Vatican has historically grappled with resolving the theological issues that are associated with new scientific discoveries. Recently the Vatican press office announced a new project on science and..."
Tags: Vatica, Roman Catholic CHurch, science, Infinity
Abstract This paper uses a problem from everyday life and sets up an algebraic equation to solve it. It then solves the problem. In this case the problem is a plane flying from San Francisco to Hawaii which experiences an emergency and it is necessary to determine at what point on the flight it is faster to continue to Hawaii than return to San Francisco, given the air speed, the tail wind factor and the distance between San Francisco and Hawaii.
From the Paper " A plane is flying miles from San Francisco to Hawaii. It is flying at a speed of mph and there is a tailwind blowing at mph. Problem How many hours after take off would it be faster to keep on flying to Hawaii than to turn around and fly back to San ..."
Abstract This paper provides a general biography of Rene Descartes, as well as a basic summary of his philosophical tenets. The paper also discusses Descartes' accomplishments in the field of mathematics as well as philosophy.
From the Paper "Often considered the father of modern philosophy, Renee Descartes is one of the most influential ground-breaking thinkers in the history of human thought. Indeed his accomplishments go beyond the field of philosophy as he was an elite mathematician who is credited with inventing analytic geometry. However it is Descartes' work in laying the philosophic foundation for modern scientific thought that is his greatest achievement. Descartes' philosophy was deeply rooted in rationalism because he began his inquiry by questioning the very validity of the knowledge that man believes he possesses."
Tags: descartes, biography, skepticism, philosophy, God, existence, cogito ergo
Abstract This paper looks at the way Alan Lightman's novel, "Einstein' Dreams", handles Einstein's theory of the relativity of time, mainly the "elasticity" of time. The paper discusses this in terms of how it relates to adult cognitive development.
From the Paper "Alan Lightman's book "Einstein's Dreams" is a novel that plays with Einstein's theory of the relativity of time. There is a proverb that says "a watched pot never boils". It requires some level of cognitive development to understand this proverb. It does not mean that the water in the pot will never boil. Depending on the level of heat applied to the pot, the water could boil in as quick a time as three minutes. However, for someone who stands over the pot and ..."
Tags: developmental psychology, Alan Lightman, Einstein's Dreams
Abstract In this article, the writer defines the term of soft computing as a collection of mathematical and reasoning disciplines that when incorporated into decision-making models provide a means for considering the effects of uncertainties on probably future outcomes. The writer reviews the development of soft computing and looks at applications. Further, the writer discusses the future of soft computing.
From the Paper "Soft computing (S.C.) refers to a collection of mathematical and reasoning disciplines that when incorporated into decision-making models provide a means for considering the effects of uncertainties on probably future outcomes. The mathematical and reasoning disciplines typically included in the definition of S.C. are a probabilistic reasoning (P.R.) S.C. models allow analysts to include data characterized by imprecision uncertainty partial truth and approximation in decision analyses ... "
Abstract This paper analyzes how the Telecommunications Act of 1996 sought to end the monopoly that once existed in the telecommunications industry. Since its adoption, the telecommunications industry has been undergoing a period of rapid change and development. The entry of new players into the market encouraged them to seek new ways to attract and keep customers. These changes have led to a rapid influx of new technology and services. Many times what defines a monopoly is not clear in every circumstance and there are many pending lawsuits for violations of Anti-trust laws in the courts today. Economic models are useful in resolving issues of whether a monopoly truly exists, or whether claims are unsubstantiated. Previous models were applicable only in certain situations. These models are unreliable in predicting monopolies outside the parameters for which they were designed. This research evaluates and analyzes economic models that could accurately predict the existence of a monopoly in the Telecommunications sector.
Introduction
Rationale for Study
Scope of Problem
Statement of Hypothesis and Research Questions
Literature Review
Methodology
Sample Population
Data Analysis
Findings
Conclusion
From the Paper "The telecommunications industry is important and considered a vital part of our everyday lives. The telecommunications industry represents only a small portion of the country's Gross Domestic Product, only 1-2% (Stigiltz, 1998). While this amount may seem insignificant, the services that it provides are vital to every other sector in the economy. Telecommunications is the backbone of many other sectors.
The Telecommunications Act of 1996 is one of the most highly debated topics in economics. There are some that say that it has been ineffective and that we now have a monopoly again, as a result of mergers and acquisitions. There are others who say that it has had the intended result, but that the movement towards a competitive marketplace does not happen overnight. Poulson (1997) believes that achieving a fair market in Colorado will not be immediate and will take some time. There are others who believe that it is working in some cases and not working in others. Alaska is moving towards a more competitive marketplace on a local level. Rural communities often have a localized monopoly as there are not enough customers to attract competition (APUC, 1997).
Michael Porter states that "Paradoxically, the enduring competitive advantages in a global economy lie increasingly in local things - knowledge, relationships, and motivation that distant rivals cannot match (Porter, 1998). He is referring to what is known as clusters, which he defines as one place of unusual competitive success in particular fields. Examples of clusters can be found across industries and around the globe. Examples of clusters include Silicon Valley, Hollywood, the California Wine Valley and the Italian Leather Fashion sector.
Clusters can be characterized by the interconnected network of suppliers, service providers and producers who are geographically aligned and who have positive dependencies and cooperation with one another. Alfred Marshall's Principles of Economics points out that location based clusters that conduct specific types of business and economic activities form based on the sharing of "tacit" knowledge among business participants. (Krugman, 1991) The success of a cluster depends not only on what operating strategy firms employ, but also on the surrounding business environment. Clusters differ from the traditional definition of a monopoly in that competition and cooperation are vital to the success of the business. According to Porter, there are three overarching ways that clusters influence competition:
1.Productivity of companies is increased by the dynamics of a cluster.
2.Clusters tend to direct the pace of innovation through competition and cooperation.
3.Clusters actually support the growth of new business - each individual business can benefit from the scale of the cluster."
Abstract This paper takes a look at the game theory, founded by mathematician John von Neumann, and the mathematics, social and behavioral sciences that are involved. This paper also reviews the definition of a game and the fundamental decision theory, a crucial factor pertaining to the game theory.
From the Paper "A game refers to a strategic situation that involves at least two rational and intelligent individuals called players. The fundamental result of decision theory, which forms the foundation of game theory as well, is that each player's goal is to maximize the expected value of his or her own payoff. These payoffs are measured on some utility scale, which is merely a numeric depiction of each outcome that can be gained through the player's actions. Individuals have preferences that give them the opportunity to rank the outcomes with respect to one other. For each pair of outcomes, a player can say whether he or she likes one better than the other or whether he or she is indifferent about the two.
The logical roots for game theory are in Bayesian decision theory. In fact, game theory can be seen as an extension of the decision theory (Myerson, 1991, p.5). In general, a decision theory is an interdisciplinary area of study for practitioners in mathematics, statistics, economics, philosophy, management and psychology. "
Abstract In this article, the writer discusses the notion of the 24-hour period used in the day/night cycle. The writer explains that this cycle began in ancient Egypt, while the sixty divisions of degrees, minutes and seconds is derived from the number system based on sixty (sexagesimal) of the Mesopotamians. The writer examines this approach to dividing the day and night into like segments. Further, the writer looks at ancient peoples' observations about the motion of the sun and discusses how this ultimately results in the system that is used to measure angles today.
From the Paper "Given its ancient origins, the reason angles are measured in degrees, minutes and seconds today has likewise been forgotten by many modern observers. In fact, the basis for this method was developed almost five thousand years ago in Sumeria based on their use of sundials to track time. In her book, Time's Pendulum: The Quest to Capture Time -- from Sundials to Atomic Clocks, Jo Ellen Barnett reports that the convention of the 24-hour period used in the day/night cycle began in ancient Egypt, while the sixty divisions of degrees, minutes and seconds is derived from the number system based on sixty (sexagesimal) of the Mesopotamians; because the Mesopotamians had not yet invented fractional numbers, they preferred whole numbers which could be divided in several different ways, and the number 60 can be evenly divided by 2, 3, 4, 5, 6, 10, 12, 15, 20, and 30."
Abstract This brief review of literature explores the integral connections between mathematics and board games so that the subject matter at hand will be fully understood. Extrapolations are then made as to why these connections may not necessarily mean that there is a connection between enjoyment of board games and math class success.
Table of Contents:
Introduction
Literature Review
Methodology
Questionnaire
From the Paper "According to Heather Jenkins (2004), the mathematical omnipresence in the world is undeniable. However, many people completely overlook the fact that "math forms the basis of many forms of entertainment (and perhaps addictions)." (Jenkins 2004) The very field of probability was born of games of chance which have been played for a very long time, when a dice player became curious about betting outcomes and consulted with the mathematicians Pascal and Fermat. Mathematics is not just an "academic" occurrence. Since the game of dice was played before the field of probability was born, even though probability is the mathematical drive behind the game, it can be extrapolated that an understanding or enjoyment of the study of mathematics itself is not necessary in order to enjoy and excel at activities which are based on math."
Abstract This paper explains that language and mathematics are similar in that they both have rules. The author points out that people make assumptions when it comes to language and mathematics, which may not be proven and only are assumed to be correct. The paper relates that mathematics and language have many similarities such as syntax and semantics.
From the Paper ""Colorless green ideas sleep furiously," are words with specific meaning but put together in a sentence they clearly lack meaning (Devlin, Born). Does language and communication mean the same thing? Do the formulas for mathematics always have the same answers? Language and mathematics do not always make sense without the formal rules of syntax. People make assumptions when it comes to language and mathematics that may not be proven and only assumed to be correct. Mathematics and language have many similarities such as syntax and semantics."
Abstract This paper explains that obvious similarities conclude that human language may be reducible to mathematical formulation. The author points out that that mathematics consists of sets of axioms in which statements can be either true or not. The paper relates, while this does not necessarily seem very much like language, Godel's Incompleteness Theorem relates that meaning can exist outside of axiomatic sets, providing a new basis for similarity.
From the Paper "It should not be surprising that mathematicians and linguists have drawn parallels between these two disciplines. There are obvious similarities that have made many believe that human language may be reducible to mathematical formulation. Some have even attempted to use the assumption to teach machines how to speak, constructing complex utterances based on a limited number of syntactical rules. However, these efforts and others to fully connect mathematics and language have proved largely unsuccessful. The following paper will briefly examine some of the similarities between language and mathematics. By its nature, language has a combinational structure, known as syntax or grammar, that permits the communication of complex ideas (Devlin "Born")."
