Free Essays on Monte Carlo In Derivative Investment

Introduction to Monte Carlo method to option evaluation. Aiming to answer question â€Å"c†, this paper proposes the simulation model for pricing the European Call option. Of course, this is the type of security, for which Black-Scholes formula provides an exact answer, so there is no real need to use the simulation to price it. On the other hand, as long as we know the exact solution, it becomes possible to check the accuracy of our simulation results. In the Black-Scholes world-view, a fair value for an option is the present value of an option payoff at expiration under risk-neutral random walk for underlying asset prices. Therefore the general approach to using Monte Carlo simulation to find the price of the option is straightforward: 1. Using the risk free neasure, simulate sample paths of the underlying asset prices over the relevant time horizon 2. Evaluate the discounted cash flows of a security on each sample path. 3. Average the dicounted cash flows over sample paths.(Charnes, 2000) The European call option solved by Monte Carlo simulation relies on the following process followed by the underlying asset S: S(t +t) = S(t) Exp [( -^2/2) t+t] where S(t) denotes the value of S at time t, is a random sample from normal distribution with mean zero and standard deviation 1.0 (Hull, 2000) The following code in VBA demostrates the practical application of the Monte-Carlo algrithm (Caflisch, 2001) for the European option evaluation constructing a complete path for S using N random samples: Function MCCall(r As Double, sigma As Double, k As Double, s0 As Double, t As Double, N As Long) As Double Dim s As Double Dim discountFactor As Double Dim growthFactor As Double Dim variance As Double Dim v As Double Dim vi As Double Dim dN As Double Dim i As Long discountFactor = Exp(-r * t) gr... Free Essays on Monte Carlo In Derivative Investment Free Essays on Monte Carlo In Derivative Investment Introduction to Monte Carlo method to option evaluation. Aiming to answer question â€Å"c†, this paper proposes the simulation model for pricing the European Call option. Of course, this is the type of security, for which Black-Scholes formula provides an exact answer, so there is no real need to use the simulation to price it. On the other hand, as long as we know the exact solution, it becomes possible to check the accuracy of our simulation results. In the Black-Scholes world-view, a fair value for an option is the present value of an option payoff at expiration under risk-neutral random walk for underlying asset prices. Therefore the general approach to using Monte Carlo simulation to find the price of the option is straightforward: 1. Using the risk free neasure, simulate sample paths of the underlying asset prices over the relevant time horizon 2. Evaluate the discounted cash flows of a security on each sample path. 3. Average the dicounted cash flows over sample paths.(Charnes, 2000) The European call option solved by Monte Carlo simulation relies on the following process followed by the underlying asset S: S(t +t) = S(t) Exp [( -^2/2) t+t] where S(t) denotes the value of S at time t, is a random sample from normal distribution with mean zero and standard deviation 1.0 (Hull, 2000) The following code in VBA demostrates the practical application of the Monte-Carlo algrithm (Caflisch, 2001) for the European option evaluation constructing a complete path for S using N random samples: Function MCCall(r As Double, sigma As Double, k As Double, s0 As Double, t As Double, N As Long) As Double Dim s As Double Dim discountFactor As Double Dim growthFactor As Double Dim variance As Double Dim v As Double Dim vi As Double Dim dN As Double Dim i As Long discountFactor = Exp(-r * t) gr...

Definition and Examples of Diazeugma

Definition and Examples of Diazeugma Diazeugma is a  rhetorical term for a sentence construction in which a single subject is accompanied by multiple verbs. Also called  the play-by-play or multiple yoking. The verbs in a diazeugma are usually arranged in a parallel series. Brett Zimmerman points out that diazeugma is an effective way to emphasize action and to help ensure a swift pace to the narrativea sense of many things happening, and quickly (Edgar Allan Poe: Rhetoric and Style, 2005). Etymology From the Greek, disjoining Examples and Observations The seven of us discussed, argued, tried, failed, tried again.(Patrick Rothfuss,  The Wise Mans Fear. DAW, 2011)Swallows dart, dip, dive, swiftly pluck perching insects from slow-moving current.(Robert Watts Handy, River Raft Pack of Weeping Water Flat. Writers Showcase, 2001)Reality demands that you look at the present, and doesnt have time for illusion. Reality lives, loves, laughs, cries, shouts, gets angry, bleeds, and dies, sometimes all in the same instant.(Allen Martin Bair, The Rambles of a Wandering Priest. WestBow Press, 2011Immigrants contribute economically, politically and culturally to American society in the same way native-born Americans do: they go to work or school, raise their children, pay taxes, serve in the military, hold public office, volunteer in the community, and so on.(Kimberley Hicks, How to Communicate With Your Spanish Asian Employees. Atlantic Publishing, 2004) The Play-by-Play Figure Another figure of speech makes one noun serve a cluster of verbs. Hockey announcers use this figure, multiple yoking, when they do play-by-play:Announcer: Labombier takes the puck, gets it past two defenders, shoots . . . misses . . . shoots again, goal!Multiple yoking, the play-by-play figure. Formal name: diazeugma.(Jay Heinrichs, Thank You for Arguing: What Aristotle, Lincoln, and Homer Simpson Can Teach Us About the Art of Persuasion. Three Rivers Press, 2007)Used to and would are good for long series of verbs:On weekdays he used to/would get up, make the breakfast, do the washing-up, pack his sandwiches, put the bins out, say goodbye to his wife and go to work.(Paul Lambotte, Harry Campbell, and John Potter, Aspects of Modern English Usage for Advanced Students. De Boeck Supà ©rieur, 1998 Shakespeares Use of Diazeugma My lord, we haveStood here observing him: Some strange commotionIs in his brain: he bites his lip, and starts;Stops on a sudden, looks upon the ground,Then, lays his finger on his temple; straight,Springs out into fast gait; then, stops again,Strikes his breast hard; and anon, he castsHis eye against the moon: in most strange posturesWe have seen him set himself.(Norfolk in William Shakespeares Henry VIII, Act Three, scene 2 Whitmans Use of Diazeugma As to me I know of nothing else but miracles,Whether I walk the streets of Manhattan,Or dart my sight over the roofs of houses toward the sky,Or wade with naked feet along the beach just in the edge of the water,Or stand under trees in the woods,Or talk by day with any one I love, or sleep in the bed at night with any one I love,Or sit at table at dinner with the rest,Or look at strangers opposite me riding in the car,Or watch honey-bees busy around the hive of a summer forenoon . . ..(Walt Whitman, Miracles) Pronunciation die-ah-ZOOG-muh

Biography of school principal Essay Example | Topics and Well Written Essays - 1250 words

Biography of school principal - Essay Example The researcher starts that his school principal Mr. X joined the school management some five years ago. Apparently, he was a very strict person with serious looks. He was a retired army officer who served the nation for more than 40 years. He was at the post of Major when he was retired and before his retirement, he had planned about his future career and that was to join some educational institution. He was Masters in Business Administration and therefore he was fit for the job requirements of a principal. When the author first saw him the researcher found him to be very sturdy, stringent, yet elegant and of course very disciplined. Despite his complete soldier looks and attitude, he possessed a very attractive and decent personality. But now when the author met him for the sake of interview he found him very different from what he was previously probably the Erikson’s development theory was working its way. He was born in a family who was closely affiliated with the services in army, navy and air force. His father was also an army general. He had five siblings and he was the third child of his parents. He was completely looked after by his mother in his infancy and childhood since his father was usually on his duty. According to the Erickson’s developmental stages, he was at the first stage when he started developing mistrust about his father as he was not available to give him care and affection that an infant requires. In his early childhood when he was around 2.5 years old his toilet training was started.

China's Renminbi Paper Essay Example | Topics and Well Written Essays - 750 words

China's Renminbi Paper - Essay Example This paper will discuss whether the China’s currency stands overrated, and give reasons behind its low value against the US dollar. It will also point out the likely consequences that rise with a 20% revaluation of China. Question 1: Value of China’s currency China’s currency familiarizes itself with many sanctions. This proves the currency to be different from other currencies like the US dollar, with considerations to capital flow (Saturn, 2008). In 2005, China felt pressure being mounted on her concerning its currency. This made China to unwillingly make changes to its exchange rate policy. Critics claim that China’s currency is overvalued. Their reasoning is that China’s government is decisively maintaining the value to make huge profits from trade. The currency’s recent rate floats between thin bands around a published equivalence in opposition to a basket of other currencies. If its equivalence acts to be too cheap, then China’s currency stands at a high value; the National Bureau of Economic Research quotes that: "once putting together vague plus serial links which they take accountability for, there is small numerical proof that China’s currency is overvalued." When currency rates at a high value, it portrays the countries willingness to take part in foreign trade, at the current exchange rate. This puts China in a position of selling more goods with its currency than they can purchase with a corresponding sum of US dollar. Undervaluing the currency makes exporting goods from China cheaper and allows them to control a large trade surplus with the US. Also, it depicts China as an economical country to locate labor and manufacture goods. This leads to the decision that China’s currency it not overvalued. Question 2: Reasons behind the currency’s low value against the dollar The currency’s current value against the US dollar stands at around 2%. This means that 8 RMB is equivalent to 1 dollar. This, in the view of the US government, rates the currency to be lowly placed. China decided to absorb foreign currencies into circulation, the funds, mainly invested in US Treasury bonds. This brought a secured but low-return investment. It also followed an accumulation of US dollars around 1 trillion in foreign investment in 2007. The main reason behind China’s decision to place its currency at a low value circulates around what it stands to benefit from its trade partners; these being the likes of US. Through exports to US, with the current value of China’s currency, China gains more through sells. This comes with its own risks because it stirs the feeling of exploitation to US (Saturn, 2008). China takes the risk of facing harsh sanctions and tariffs from US. If the exchange rate instability goes up, then the value of these assets would also become unstable. The increased instability of financial trade puts pressure to the steadiness of the financial system, and makes monetary policy objectives much difficult to reach. US, on the other hand stands to be exploited with China which seeks to benefit from it. The value of the dollar stands to go down because of low market deficit. Question 3: Risk of the 20% revaluation for China’s currency The government of China in the recent days has engaged in ideas of revaluation of its currency. It main idea revolves around investing abroad. China’s main trading partners are not only western countries. It also trades with Japan, and other Asian and

Oil Extraction Essay Example for Free

Oil Extraction Essay When extracting lipids or fats from foods, both the method as well as the solvents chosen to perform a complete, or close to complete extraction are important. If these two elements are not taken into consideration, the extraction may not be complete, or the extract may contain a large quantity of undesired impurities. The natural fats and oil are mixtures of glycerides of fatty acids. Fats and oils are naturally occurring organic compounds which belong to a large group of water insoluble substances called lipids. Lipids are relatively non-polar molecules, they can be pulled out of a sample using relatively non-polar solvents. With a non-polar solvent, only non-polar molecules in the sample dissolve while polar ones do not. A solution to the problem of extracting trapped lipids is to use an extraction procedure such as the soxhlet that will help break up the polar barriers and allow the solvent to reach the non-polar compounds and extract them. In this experiment, soxhlet extraction was used. Soxhlet extraction is an extraction method that uses chemical solvents. Oils from the algae are extracted through repeated washing, or percolation, with an organic solvent such as hexane or petroleum ether, under reflux in a special glassware. Copra, dried kernel of the coconut, was the sample used. Often though, the sample must be ground and prepared prior to the extraction procedure in order to break up the cell membranes and other structures that would make extraction difficult. In this experiment, petroleum ether was used as the solvent due to its low boiling point, relatively non-toxic nature (when compared to chloroform or methanol), and of course because it is quite non-polar. When talking about ether, two kinds can be used in lipid extraction: anhydrous diethyl ether CH3CH2OCH2CH3 and petroleum ether, which is a mixture of pentane (CH3CH2CH2CH2CH3) and hexane (CH3CH2CH2CH2CH2CH3). Petroleum ether is more non-polar, cheaper and less flammable than diethyl ether. Due to its greater non-polarity, petroleum ether will yield a more specific extract than diethyl ether because it will only extract the most polar molecules. However, as petroleum ether may not be able to break apart some of the more polar shells surrounding some lipids and give a near complete lipid extraction, diethyl ether is usually used despite its higher flammability and cost.

The Effects of Subliminal Advertising Essay -- Marketing Advertising

Missing Example Figures The Effects of Subliminal Advertising The power of subliminal advertising in effecting consumers is still unproven. The concept of subliminal advertising is based on a "threshold". "This [is] thought to be a fixed point below which awareness does not extend." (Sutherland: p.30) If a word is flashed on a television screen for 50 milliseconds a person would not be conscious of it. If the time of the exposure is increased the word crosses the threshold and a person becomes consciously aware of the word. This process varies within the same person from day to day. For example, if a person is hungry while watching television, advertisements of food will be noticed more than if that same person just ate. Sometimes we are more alert than at other times. The effects of being tired, using drugs or alcohol can also vary when a stimulus is registered. This is an example of a subliminal advertisement. In the bottom of the glass it says "U BUY". This message subliminally tells the consumer to buy their certain product, hoping for their sales to increase. The notion of subliminal advertising grew within the 1950's. A man named James Vicary who inserted subliminal messages in movies "sparked the first large-scale subliminal scare, and his projections into the subconscious, though never documented or replicated, are still frequently cited as "evidence" of the insidious power of subliminals." (Subliminal Survives) Although sales of cola increased 18% and sales pf popcorn increased 58%, Vicary later downplayed the effectiveness of subliminal advertising due to the small amount of research he had collected from it. In the 21st century, subliminal messages are still thought to be us... ...inal Advertising) There are many positive aspects to some subliminal techniques. An example of this is tapes which aid people to loose weight or stop smoking. In turn, they have become a popular self-help fad. Subliminal advertising, wether it works or not, will no doubt be utilized indefinately by companies to advertise their products. Works Cited Elliston, Jon. March 25, 2001. Hidden Persuasion?. [on-line], xx. Available: www.parascope.com/articles/03971/sublim1.htm. Elliston, Jon. March 25, 2001. Subliminal Survives. [on-line], xx. Available: www.parascope.com/articles/0497/sublim6.htm No Author. March 14, 2001. Subliminal Advertising. [on-line], xx. Available: www.snopes2.com/business/hidden/popcorn.html. Sutherland, Max. 1993. Advertising and the Mind of the Consumer. Australia: Allen and Unwin Pty Ltd. The Effects of Subliminal Advertising Essay -- Marketing Advertising Missing Example Figures The Effects of Subliminal Advertising The power of subliminal advertising in effecting consumers is still unproven. The concept of subliminal advertising is based on a "threshold". "This [is] thought to be a fixed point below which awareness does not extend." (Sutherland: p.30) If a word is flashed on a television screen for 50 milliseconds a person would not be conscious of it. If the time of the exposure is increased the word crosses the threshold and a person becomes consciously aware of the word. This process varies within the same person from day to day. For example, if a person is hungry while watching television, advertisements of food will be noticed more than if that same person just ate. Sometimes we are more alert than at other times. The effects of being tired, using drugs or alcohol can also vary when a stimulus is registered. This is an example of a subliminal advertisement. In the bottom of the glass it says "U BUY". This message subliminally tells the consumer to buy their certain product, hoping for their sales to increase. The notion of subliminal advertising grew within the 1950's. A man named James Vicary who inserted subliminal messages in movies "sparked the first large-scale subliminal scare, and his projections into the subconscious, though never documented or replicated, are still frequently cited as "evidence" of the insidious power of subliminals." (Subliminal Survives) Although sales of cola increased 18% and sales pf popcorn increased 58%, Vicary later downplayed the effectiveness of subliminal advertising due to the small amount of research he had collected from it. In the 21st century, subliminal messages are still thought to be us... ...inal Advertising) There are many positive aspects to some subliminal techniques. An example of this is tapes which aid people to loose weight or stop smoking. In turn, they have become a popular self-help fad. Subliminal advertising, wether it works or not, will no doubt be utilized indefinately by companies to advertise their products. Works Cited Elliston, Jon. March 25, 2001. Hidden Persuasion?. [on-line], xx. Available: www.parascope.com/articles/03971/sublim1.htm. Elliston, Jon. March 25, 2001. Subliminal Survives. [on-line], xx. Available: www.parascope.com/articles/0497/sublim6.htm No Author. March 14, 2001. Subliminal Advertising. [on-line], xx. Available: www.snopes2.com/business/hidden/popcorn.html. Sutherland, Max. 1993. Advertising and the Mind of the Consumer. Australia: Allen and Unwin Pty Ltd.

History: american civilization essay

William McKinley was proposed as the presidential Republican with the support of Mark Hanna, who was very wealthy industrialist he favored tariffs so as to protect the nation’s prosperity and a limitation on silver and ended up defeating William Jennings Bryan, who was feared as a menace to the administration during 1892 election.  McKinley was adapted to the international bimetallism idea which was a contract of a number of countries in the usage of both silver and gold as the currency base.   He later opened the way to acceptance of the1900 Gold Standard Act.William McKinley was the president of diverse historical period. William McKinley lived during the Populist period and was the US president during the Progressive era.   In that period, as the president of the United States, traditional values such as the gambling and brothels were being eroded.   The ideology was changing of all the political parties.   Factionalism rose as a consequence.   The United States Peoples ways of life was shifting rapidly.   America moved to industrial economy from the agricultural economy and to urban environment from the rural environment and from the producer’s culture to the consumer’s culture.Small businesses and factories and increased in number.   Immigrants were moving to America very quickly as Workers demanded more rights and planned means to get them.   Aggressive labor movements pursued. There were radical changes in the government and the politics that were meant to make America further democratic.   William McKinley was against corruption and the vice in his government as People demanded businesses to be further be responsible too.   The city dwellers demanded better living conditionsNevertheless, Theodore Roosevelt became the president in these continuing circumstances when William McKinley was assassinated. Some historians believe Roosevelt became the president when the modern era had already been begun.  Roosevelt w as fond of writing about himself boastfully and excessively, besides that he was reckless.   His behavior towards the courts and the Congress displayed his highhandedness.   He never made long term plans but his life was illustrated by contradictions and inconsistencies.In the year 1900, Roosevelt had claimed that he could not be a vice president, but changed his mind later.   After leaving the office in 1904, he had said that he would never run for the US presidency again, but contradicted himself eight years afterward.   His understanding of the global affairs was deficient.   Roosevelt’s aspiration was also â€Å"adolescent† sine he had left the post of the New York police commissioner without a success.   Roosevelt was successful strenuous in improving the navy technologically.   He believed the Navy should be used for offense. The major function of the US Navy was to destroying the enemies and not defending its coastline. The navy had only seven main ships when Roosevelt became president, but were twenty two by the time he left was considered 5th best in the world.McKinley sponsored a protective tariff in 1890 that bore his name which was the highest tariff in the United States history.   While he was Ohio governor and later became he favored negotiation between labor and capital and frequently favored the poor.  After the Spanish American War and the1900 re-election, he revealed a fresh and a broader means for an internationally conscious America.   Ironically, this became his final speech as he was mortally wounded by an assassin’s the following day on 6th, September, 1901.McKinley competently manipulated both the politicians and the public.   His domestic achievements and programs were overpowered by the foreign policies that dominated his administration.   Ever an advocate for a healthy and a wealthy economy, McKinley supported creation of new overseas markets for products from United States.     These foreign markets put America at danger of being involved affairs of the other nations.Though the Spanish-American War that ended in August 1898 was short-lived, the US surfaced as a world super power.   He played a major role in organizing the US military effort where he was directly functioning as the Commander-in-Chief.   Peace negotiations with the Spanish government led to US occupation of Cuba until 1902 when it gained independence, besides the acquisition of Guam and Puerto Rico.Not willing to let the previous Spanish ownership, the Philippines islands fell into competing hands, he, McKinley directed his envoys to get the islands.   After getting the news of the conquest of Admiral George Dewey against the Spanish fleet on 1st may 1898 at Manila Bay, McKinley ran a campaign persuading the Americans that the islands had to become the ownership of the US.   Despite the opposition, he engineered ratification by the senate of the Treaty of Paris which was an achievement tha t expanded the influence and the powers of the president.The rest of McKinley’s life as president was shaped by the results of the Spanish-American War.   .The American Civil War of 1861 to1865 that outshined the Spanish American War and the U.S. participation in World War One of 1917 to 1918, united with the recent national sense of guilt concerning the Spanish-American War clouded McKinley’s reputation.   McKinley strengthened the presidency, toured widely, and offered the press greater accessibility to the White House.   He had a masterful management of the congress led to evolution of the modern presidency; in fact, he laid the base for further development of the presidential office under the presidents Theodore Roosevelt and Woodrow Wilson.REFERENCESGeorge William Norris (1992) Fighting Liberal, University of Nebraska Press, USKathleen H. Jamieson (1996) Packaging the Presidency, Oxford University Press, USON HISTORIANS’ CHANGING PERCEPTIONS OF THEODO RE ROOSEVELT PRE-1950s AND POST-1940s, retrieved on 3rd, October, 2007, available at http://workingpapers.org/writings/roosevelt.htm

Swimming allows the body to burn calories

Swimming is one of the best exercises to get a person into shape.   From a scientific perspective, swimming has been found to be the ideal physical fitness activity.It targets many of the body’s muscles and helps strengthen and develop one’s body.   In fact, most researchers agree that swimming is the only activity that works on the entire body by improving a person’s cardiovascular conditioning, increasing a person’s muscle strength, improving one’s endurance, fixing one’s posture and making one more flexible all at the same time.These benefits that one can gain from swimming are unmatched by any sport as only swimming offers all of these benefits.   This short report shall discuss a few of the more specific reasons why swimming is the ideal physical fitness activity.The first reason, as already mentioned, is that swimming gives one a complete body workout.   It benefits the cardiovascular system without straining one’s heart and improves a person’s use of oxygen.   The timed breathing required in swimming conditions the body and allows a person to improve not only his endurance but also a person’s lung capacity.Swimming is also a perfect complement for cross-training workouts.   As a person who swims becomes more fit, the resting heart rate and respiratory rate is reduced thus allowing for more blood to flow into the heart and making the lungs more efficient.   Since swimming gives a complete body workout, it also allows one to burn calories faster than in any other sport.   A runner, on average, burns as many calories on a six mile run in one hour as a swimmer who was been swimming for one hour has burned.   Swimming not only develops one’s body but also helps people lose weight fast and helps keep people in good health.Another reason why swimming is considered as an ideal exercise arises from the fact that when a person swims the impact on the joints and bones is signifi cantly reduced by the buoyancy of the water.   The weight bearing environment of swimming therefore provides little stress to the body’s connective tissue and joints.This means that the body is not only strengthened but also protected from the wear and tear on the bones and joints.   Since a person weighs nearly 1/10th of his or her body weight in water, there is less gravitational stress on the body.   This greatly reduces the incidence of injuries and allows for a relatively rigorous and injury free work out.Swimming allows the body to burn calories at a rate of about three (3) calories a mile per pound of bodyweight.   Therefore, if a person weights approximately 150 (lbs) pounds and it take that person thirty (30) minutes to swim one (1) mile, which is about 1,760 yards or 1,600 meters, then that person will be burning almost 900 calories in one (1) hour.It is important to remember of course that these estimates may vary for different swimmers depending on skill a nd actual degree of physical conditioning.One of the most difficult things that a person encounters when getting into shape is the boredom from the routine.   Swimming is not only great exercise but it is also an entertaining activity.   It is fun for not only individuals but for groups as well and makes it easier for people who want to get in shape keep up their routine without getting bored.From a psychological perspective, swimming allows people to relax and swim with very little effort.   When a swimmer gets into the rhythm of swimming and allows the mind to focus on the stroke, it is similar to a form of meditation that provides the body with an overall feeling of general well being.Studies have shown that people who swim in the mornings or begin their days by swimming are more likely to have more energy for the rest of the day and are less likely to feel stressed or pressured.Swimming does not only give a person the psychological feeling of well being but also helps in o ther aspects such as the development of certain life skills namely sportsmanship, time-management, self-discipline, goal-setting, and an increased sense of self-worth through their participation in the sport.These reasons have led to the establishment of swimming as one of the best exercises to help a person maintain a healthy physique.

Market Imperfections With Internet Travel †Economics Essay

Market Imperfections With Internet Travel – Economics Essay Free Online Research Papers Market Imperfections With Internet Travel Economics Essay The Internet is clearly a marvelous technological advance. It helps millions of people from all over the globe to exchange information almost instantly which certainly has big effect on markets throughout the world. It makes the markets more competitive and more customers related. You might say that the internet is creating a â€Å"new† economy which is based on more information and communication. Many businesses know that in order to stay competitive they need to follow this new trend and many of them have. Today you can buy almost everything through the internet and it certainly is very convenient and easy. One of the markets that is particularly affected by the internet and the e-commerce is the travel industry. Before people, such as my parents, where more used to book a holiday through a travel magazine or a travel shop but that time has passed and nowadays most of my family holidays are booked through the internet. The reason to this is because it is easier and the amount of products and services is bigger. The e-commerce also makes the possibility of comparison between the different products much higher. All these factors have made the market better but the market is far from perfect and this i s due to market imperfections. In order for any market to be perfect the market should have a so-called â€Å"Perfect Competition†. If this would be the case there would be no market imperfections. But this is not the case and in the real world there are many market imperfections. In the real market there are market imperfections such as â€Å"Consumers Lack Perfect Knowledge†. This means that consumers are not completely aware of the products or services their buying. In most markets there exist entry barriers which make it hard for new companies to come in, due to such factors as high costs and brand loyalty to existing companies. While operating in the market the companies have the possibility to collude and keep up the prices. They may also differentiate their products and use advertising which makes it hard for the consumer to get a true picture of the products. But the market imperfections have certainly been reduced since the launch of the e-commerce. The travel industry has changed in dramatic ways since the advent of the internet. The e-commerce has added many new things to the knowledge of the consumers. Now days there is a greater price transparency, with the consumers able to compare different flight tickets and vacations on-line. There is greater information on the quality of the products since it is possible to read reviews of people already used the service. Travellers now use this medium of e-commerce to plan and prepare trips. The suppliers are trying to offer cheaper trips in order to stay competitive and the internet helps to avoid the service charges added by the companies. The e-commerce has helped new travel agencies enter the market and has diminished the control by large firms to overcharge prices. The technical components that make up the travel industry have changed as well since the Internet’s arrival. The emergence of travel web sites such as Planet Rider and online travel companies such as My Travel ha s taken the web by storm and forced travel agencies to rethink their approaches and adapt to the popularity of the Internet. The arrival of a homepage like My Travel has changed the travel market in many ways. The homepage offers everything to satisfy a customer needs. They offer a variety of products such as Ski Holidays, Sun Holidays, and Cruises. By using their homepage a customer can easily find out everything about the company from their history to their board of directors. The homepage enables the customer to ‘Shop around’ and compare prices with their competitors such as Expedia. The customer can easily compare the prices of the different trips and it makes the planning of the trip very easy. The customer saves time and nerves on waiting in telephone cues. The page is very easy to use and it should not be a problem for a person even with low knowledge of the internet. A homepage like this helps to lower entry barriers and increases competition which results in better quality and lower cost products. It also enhances the use of travel since the price are low and this attract new customer s. A homepage like EasyJet.com under eases the long process of ticket booking. Before the process of ticket booking was either done through telephone service or ticket shops. Now days a ticket can be booked through a simple click on the mouse button. The customer is provided with a long range of products and can easily compare prices between rivals. And you might even notice that even though Easy Jet is a low price carrier it might sometimes charge more than normal airline carriers (see appendices). The homepage constantly updates new special offers and has features that help the customer to create a trip just the way he wants it. The homepage is translated into 7 different languages and is therefore easy to use for a person with low language skills. The homepage provides services to customers to find out everything about the routes even such things as the weather. The online ticket booking does not online benefit the customers but also the companies. It helps the companies to reduce th eir overall costs allowing them to invest in ways to improve their market presence. Due to the low costs offered by the company the competition increases and other air carriers such as British Airways are forced to cut down their prices. This surely makes the market more competitive and benefits the customer. The Travelocity homepage is another example of a very simple and straight forward homepage. It offers a wide range of products such as flights, hotels, cars/rail, vacations, cruises and last minute deals. It is a very good homepage that is easy to use and offers and impressive variety of products. The homepage offers good information about the company as well as their products. The homepage even gives you ideas of what to do when you arrive to your destination. The consumer benefits from the homepage since it is open 24/7 and the prices are fairly low. The homepage in general helps the company to lower their distribution costs and gives them the potential to expand considerably and create a direct relationship with their customers. It helps the market to be more competitive and gives the customers a higher knowledge and possibility to compare products (see appendices). A homepage like this also helps lowering the entry barriers since the set up costs for such a homepage are very low . Obviously the internet has improved not only the travel market but the market in general. The booking of travel online is perhaps the most successful niche of all of the world’s e-commerce efforts. It has benefited the consumer in many ways. Now days the consumer has the possibility of buying a wide range of products to lower prices, easily compare the prices of suppliers, finding useful information about the products and easily buying the products by simple mouse clicks. The internet has helped to reduce the costs for both consumers and suppliers. It has helped to reduce the entry barriers and increase the competition. But the Internet is far from being perfect due to several factors such as technical problems and credit card scams. There has been the last few years, a growing problem with credit card scams using the internet. This is a world wide fraud and uses debit and credit cards. This is certainly a big problem for the e-commerce and costs several millions every year. B ut in general the advantages of the e-commerce overcome the disadvantages. In future I think that the companies within the travel industry which do not take the e-commerce into account will find it very hard to compete and will probably be left out of business. Bibliography: * My Travel Available at URL: uk.mytravel.com/ * Easy Jet Available at URL: easyjet.com/ * Travelocity Available at URL: travelocity.com/ * British Airways Available at URL: britishairways.com/travel/fx/public/en_gb?eId=111011timestamp=0602011151 * Easy Jet Available at URL: easyjet.com/en/book/step2.asp * Sloman J., (2003) Economics (fifth edition) UK: Pearson Education Limited Appendix Research Papers on Market Imperfections With Internet Travel - Economics EssayAnalysis of Ebay Expanding into AsiaDefinition of Export QuotasMarketing of Lifeboy Soap A Unilever ProductOpen Architechture a white paperTwilight of the UAWBionic Assembly System: A New Concept of SelfPETSTEL analysis of IndiaThe Project Managment Office SystemNever Been Kicked Out of a Place This NiceHip-Hop is Art

Hopefully Speaking

Hopefully Speaking Hopefully Speaking Hopefully Speaking By Sharon Pedantry or laxity? Upholding standards or lapsing into colloquialism? When it comes to using hopefully, these are the terms that are often thrown around. Heres why. As an adverb, hopefully originally meant in a hopeful manner (example: the dog waited hopefully for a bone) and that is still the primary meaning given in most dictionaries. That usage corresponds with other similar adverbial usage, such as happily (in a happy manner) or miserably (in a miserable manner). Those who are sticklers for correct and standard usage maintain that this is the only proper way to use hopefully. However, much of the world disagrees. The use of hopefully as a sentence modifier to mean it is hoped that has been around since the 1930s and has been in common use since the 1960s. The analogy here is with words like mercifully (example: Mercifully, the concert was short) and frankly (example: Frankly, I dont care what you think). Thanks to more than 75 years of colloquial usage, the second meaning is now standard in both speech and writing. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Misused Words category, check our popular posts, or choose a related post below:100 Beautiful and Ugly WordsConfused Words #3: Lose, Loose, LossTypes of Ignorance

Risk management Essay Example | Topics and Well Written Essays - 1000 words - 3

Risk management - Essay Example The fire disaster has occurred in the tower once and destroyed significant part of the floor of the tower under construction then. Therefore, there is no proof that it would not occur again anywhere in the tower. With increasing activities of terrorism it is important to be wary of explosions cause by them. There is no known political risk at the moment known to V-bite restaurant. Human risks that may face the restaurant are numerous including but not limited to sickness and absenteeism of the employees as well as embezzlement and pilferaging perpetuated by the employees. According to Malcom, Ward and Smith (36), the probability that the market will not be large enough to sufficiently generate enough revenues as outlined in the business plan is a serious market risk. This occurs when there are few customers in the locality or when there is a fierce competition among the market players. The market risks facing V-bite restaurant include product risks, market existence risk, sale volume risk and pricing risks. A product risk refers to the small size and poor quality of the menu available to customers. Pricing risks are evident when the prices of delicacies in the menu are higher than what other similar restaurant offer. The above risks may bring with it reputation damage, interruption of business operations, customer loss, reduced productivity as well as high damaged reduction and control cost. The cells shaded red is extremely high risk zone. Market risks have been identified as extremely high risk facing the enterprise. V-bite restaurant would not be the only restaurant that offers purely vegetarian delicacies. Instead, there are other nine restaurants offering identical or similar menu. The restaurants are Spice Kraft JLT, 77 Veggie Boutique, Sukh Sagar Swift, Sukh Sagar at the Beach, Saravanaa Bhojan Shala, Yogurberry, SMS Restaurant, Kamat and Kamat Shireen. Most of the named restaurants have been in operation for longer time.

The usage of derivative instruments Essay Example | Topics and Well Written Essays - 3000 words

The usage of derivative instruments - Essay Example The paper tells that in the present day context, the degree of competition was observed to be witnessing a significant rise along with the environment of business undergoing a constant alteration. The constant alterations have been giving rise to unforeseen situations that calls for effectual management with respect to the companies as well as banks. Therefore, it can be inferred that in relation to the mentioned context, it becomes important for the business enterprises to effectually manage the unforeseen risks from beforehand. It was identified in this regard that the most widely used financing strategies to overcome the challenges raised by business risks are the use of financial derivatives. Examples of financial derivatives used in the current risk management strategies are options and futures, and forward contracts. Options are defined as â€Å"the right and not the obligation to buy or sell something on a specified date at a specified price†. On the similar context, fu tures and forward contracts are also considered as significant risk management tools that are based on the value of fundamental assets. However, these techniques are subject to various factors such as credit rates, interest rates, currency fluctuations and other financial aspects which should be taken into consideration prior to the execution of this strategy. A derivative has been defined as an agreement that is found to take place among a buyer as well as a seller and gets initiated on the current date with regard to a particular transaction that is expected to be realised on a future date or time. For example, the tr