This dissertation looks at various specific applications of stochastic processes in finance. The motivation for this work has been the work on the valuation of the price of an Asian option by Rogers and Shi (1995). Here, we look at functions of integrals of log - Gaussian processes to obtain approximations to the prices of various financial instruments. We look at pricing of bonds and payments contingent on the interest rate. The interest rate is assumed to be log - Gaussian, thus ensuring that it does not go negative. Obtaining the exact price might not be easy in all cases - hence we use of a combination of a conditioning argument and Jensen's inequality to obtain the lower bound to the prices of the bond as well as payments contingent on interest rates. We look at single driver models as well as multi-driver models. We also look at bonds where default is possible. We try to provide a mathematical justification for the choice of the conditioning factor used throughout the thesis to approximate the price of bonds and options. This is similar to the approach used by Rogers and Shi (1995) to valuing an Asian option; but they had provided no mathematical justification. Another part of this dissertation deals with the problem of pricing European call options on stochastically volatile assets. Further, the price and the volatility processes are in general correlated amongst themselves. Obtaining an exact price is quite involved and computation intensive. Most of the previous work in this field has been based on the solution to a system of partial differential equations. As in the case of pricing bonds, here too, we use a conditioning argument to obtain an approximation to the prices. This method is much faster and less computation intensive. We look at the situations of fixed and stochastic interest rates separately and in each case, we look at the volatility process following a simple Brownian motion and an Ornstein Uhlenbeck process. We also look at the value of stop - loss reinsurance contract for the case of a doubly stochastic Poisson process. Finally, we look at an alternative method of pricing bonds and Asian options. This is done by using a direct expansion and thus avoids the numerical integration that is used in the earlier chapters.

No description available.

For certain shellfish species, a mechanical harvester has the potential to greatly reduce harvesting costs. Traditionally, hand rakes are used in shellfish harvesting in British Columbia. In order to determine if it is environmentally feasible to use a mechanical harvester, an environmental assessment on mechanical harvesting and traditional harvesting needs to occur for comparison. In July 2008, a preliminary oceanographic assessment was conducted at three study sites in Baynes Sound. Each of the three study sites contained a mechanical and manual harvest plot and reference stations. Sampling stations were established at fixed positions within each plot and at four positions along a downstream transect (following the dominant current direction.) Surveys were conducted 24 hours pre-harvest, immediately post-harvest, and 24 hours post-harvest. Parameters included in situ sediment sulphides, eH (REDOX), sediment grain size (SGS), visual condition (digital imagery), sedimentation (silt flux) and sediment macro-fauna. Results show only localized environmental effects associated with each harvest approach; with no significant difference documented between the manual and mechanical harvesting methods on the study beaches. These results indicate the use of a mechanical shellfish harvester is as environmentally sound as the traditional method of hand harvesting, and poses no additional environmental risks. Introducing mechanization in shellfish harvesting will allow shellfish producers to reduce costs and increase profits, making the British Columbian shellfish industry more competitive with other suppliers. / Graduate

The purpose of this study was to investigate if there were predictors for student participation in university governance; voting rates in particular. The variables examined were citizenship status, gender, age, basis of admission, program level, and program delivery model. The location of the study, Royal Roads University, offers the majority of its programs through a blended delivery model: an online format combined with short residencies. A regression analysis was performed on voter participation rates in elections for student representatives on the Royal Roads University Student Association, Academic Council, and the Board of Governors. Results indicate low voting rates overall with the highest frequency of voting amongst those in blended delivery programs; correlations exist between age and citizenship status, and between program delivery model and program level, but statistically significant predictors of voting behaviour were peculiar to each election dataset. / Graduate

No description available.

No description available.

No description available.

Following the 1997 Asian Crisis, a number of economies have been burdened with so-called Twin Crises, facing both vulnerable exchange rates and a distressed financial sector. The three papers in this thesis examine the resolution of a twin crisis in one such country - Indonesia. In debt overhang and exchange rate collapse, I adopt the simplest representation of the economy and the Asian crisis. The model is a modified Hecksher-Ohlin framework with labour as the sole domestic factor. The crisis is triggered by a terms of trade shock. The analysis implies that workers have already suffered a wealth loss in the form of a wage cut. If they are inclined to pay all the overhang, they will take another cut - a large one - due to the so-called overhang multiplier. In Indonesian cronies' tardy crisis resolution skills, both the underlying model and the description of the crisis are made more realistic. The model has another domestic factor added to allow for the existence of domestic capitalists. The crisis is triggered by two additional factors; a loss of confidence by foreign investors and an end to a domestic subsidy on foreign capital. Until agreement is reached on the overhang, the economy suffers so-called corporate decay. I introduce the cronies, and show that it may be optimal for them to stall agreement, even if there is perfect information. Contrary to conventional wisdom, bankruptcy reforms do not necessarily hasten agreement, though they do improve the payoffs to the international creditors. In debt forgiveness, I examine the pessimistic scenario that Indonesia becomes like a Highly Indebted Poor Country (HIPC), so that all the issues related to debt forgiveness become relevant. I improve a contract arising from a workhorse model of debt forgiveness, showing a better way to provide reform incentives for countries heavily in debt.

No description available.

No description available.