...-asset options. Evolutionary superiority of the Black-Scholes function in dynamic hedging scenarios is computationally demonstrated using a haploid ... ...a Black-Scholes type expected payoff (utility) maximization function in a dynamic portfolio insurance scenario, we proceeded to explore the utility ... ...ial structured product based on the fundamental principle of multi-asset, dynamic hedging strategy in the fourth and last chapter. It is in ... ...o be short-lived. 1.1 A Cognitive Dissonance Model of Behavioral Market Dynamics Whenever a group of people starts acting in unison guided ... ...driven by a noise x n . In principle, the coefficients b j, k describes dynamical features that are not evident in the power spectrum or related m... ...the volatility process over time have coefficients of determination in the range say between 50%-70%, then we can say that t varies in the set T (50%... ... current excursions in implied volatility on short-term options lie in the range say 35 between 40%-60%, then f varies in the set F (40% - 60%). Th... ...at the possibility to lend or borrow money at a risk-free rate widens the range of investment options for an individual investor. The inclusion of th... ... greater utilty of empowerment to an individual investor due to the wider range of decision options. Of course, according to the Black-Schole...

...s involving financial structured products manufactured out of complex, multi-asset options. Evolutionary superiority of the Black-Scholes function in dynamic hedging scenarios is computationally demonstrated using a haploid genetic algorithm model programmed in Borland C. The work explores, both theoretically and computationally, the psycho-cognitive factors governing the ...

...al relations flow through a cycle in a revolutionary way, the FCM is called a dynamical system. DEFINITION 1.1.9: Let n n C C C C C C 1 3 2 2 1 ,... ...s through the edges of a cycle and if it again causes C i , we say that the dynamical system goes round and round. This is true for any node C i ... ...true for any node C i , for i = 1, 2, … , n. The equilibrium state for this dynamical system is called the hidden pattern. DEFINITION 1.1.10: If... ...called the hidden pattern. DEFINITION 1.1.10: If the equilibrium state of a dynamical system is a unique state vector, then it is called a fixed ... ...onsider a FCM with C 1 , C 2 , …, C n as nodes. For example let us start the dynamical system by switching on C 1 . Let us assume that the FCM sett... ... patient and so on. Thus for us to define a FRM we need a domain space and a range space which are disjoint in the sense of concepts. We further as... ...e no intermediate relation exists within the domain elements or node and the range spaces elements. The number of elements in the range space need ... ...ain space are taken from the real vector space of dimension n and that of the range space are real vectors from the vector space of dimension m (m i... ...need not be equal to n). We denote by R the set of nodes R 1 ,…, R m of the range space, where R = {(x 1 ,…, x m ) ⏐x j = 0 or 1 } for j = 1, 2,…...