We investigated the motions associated with prices for futures contracts within financial markets.We aimed to derive the market prices from the physics approach.We used the projectile motion models defined under two d...We investigated the motions associated with prices for futures contracts within financial markets.We aimed to derive the market prices from the physics approach.We used the projectile motion models defined under two distinct conditions(perfect/horizontal and imperfect/drag implication)based on Newton’s and Galileo’s laws of motion.In addition,we applied the simple harmonic oscillatory model to present the movements of prices from the market equilibrium position.Despite that it was more theoretical,we managed to derive the futures price functions and the results showed that futures prices depend largely on market forces of demand and supply and underlying assets price behaviour.Also,we managed to find the terminal prices for the securities given the initial prices,which are a worrying matter to the trading parties.The equilibrium price analysis was done and the simple harmonic model proved to be efficient in such modelling.We managed to identify the price motions to and from the equilibrium point with markets.Results suggested that it is the market frictions(market forces of demand and supply)that propel prices to move.Also,we noted that these forces are responsible for bringing back the prices at equilibrium if the market is left to operate as free.Nevertheless,from the performance comparison of the two models used,results suggested that futures price function from a drag variable is more powerful in modelling the price behaviour for options than the one sorely controlled by market demand and supply forces.And the simple harmonic oscillator model is good at modelling the equilibrium movements of asset prices.Above all,we used the mean absolute deviation(MAD)to validate our futures derivative pricing model.Fortunately,the obtained MAD results supported the efficiency of our model.However,it should not be carelessly taken that the projectile models used are much good at price motions/movements within the market from time to time with a stunted ability to capture in other facts of interest,such as volatility coefficients which pave a research way for other scholars.展开更多
Stock price volatility is considered the main matter of concern within the investment grounds.However,the diffusivity of these prices should as well be considered.As such,proper modelling should be done for investors ...Stock price volatility is considered the main matter of concern within the investment grounds.However,the diffusivity of these prices should as well be considered.As such,proper modelling should be done for investors to stay healthy-informed.This paper suggest to model stock price diffusions using the heat equation from physics.We hypothetically state that,our model captures and model the diffusion bubbles of stock prices with a better precision of reality.We compared our model with the standard geometric Brownian motion model which is the wide commonly used stochastic differential equation in asset valuation.Interestingly,the models proved to agree as evidenced by a bijective relation between the volatility coefficients of the Brownian motion model and the diffusion coefficients of our heat diffusion model as well as the corresponding drift components.Consequently,a short proof for the martingale of our model is done which happen to hold.展开更多
Tensional arguments about pension funds and mutual funds towards economic development and stimulation seem to be inevitable among policymakers and economic agents with little paid attention as in literature.This study...Tensional arguments about pension funds and mutual funds towards economic development and stimulation seem to be inevitable among policymakers and economic agents with little paid attention as in literature.This study however took a comparative significance analysis of these two independent funds in relation to economic growth in the South African economy.We hypothesize that,mutual funds are more powerful than pension funds in fostering economic growth as evidenced by some scenarios where mutual funds are trusted to encounter pension funds risks.We then used multiple linear regression model accompanied by a t-test means difference test as a measure of significance difference between the two towards economic growth.As a primer approach,we used the Pearson correlation analysis and the results were noted.Pension funds are a powerful tool of fighting poverty in economies.However,our results were not in support.Our results tend to agree with our suspicion.From all the methods used,mutual funds proved to have greater impact on stimulating economic growth(GDP)in South Africa.Therefore,South African policymakers and officials should by all ways try to support the mutual fund industry as it have traceable marks on economic growth stimulation but pension funds should not be totally ignored as they play significant roles as well such as poverty fighting and ensuring survivability of the most stressing dependent group in the economy.展开更多
文摘We investigated the motions associated with prices for futures contracts within financial markets.We aimed to derive the market prices from the physics approach.We used the projectile motion models defined under two distinct conditions(perfect/horizontal and imperfect/drag implication)based on Newton’s and Galileo’s laws of motion.In addition,we applied the simple harmonic oscillatory model to present the movements of prices from the market equilibrium position.Despite that it was more theoretical,we managed to derive the futures price functions and the results showed that futures prices depend largely on market forces of demand and supply and underlying assets price behaviour.Also,we managed to find the terminal prices for the securities given the initial prices,which are a worrying matter to the trading parties.The equilibrium price analysis was done and the simple harmonic model proved to be efficient in such modelling.We managed to identify the price motions to and from the equilibrium point with markets.Results suggested that it is the market frictions(market forces of demand and supply)that propel prices to move.Also,we noted that these forces are responsible for bringing back the prices at equilibrium if the market is left to operate as free.Nevertheless,from the performance comparison of the two models used,results suggested that futures price function from a drag variable is more powerful in modelling the price behaviour for options than the one sorely controlled by market demand and supply forces.And the simple harmonic oscillator model is good at modelling the equilibrium movements of asset prices.Above all,we used the mean absolute deviation(MAD)to validate our futures derivative pricing model.Fortunately,the obtained MAD results supported the efficiency of our model.However,it should not be carelessly taken that the projectile models used are much good at price motions/movements within the market from time to time with a stunted ability to capture in other facts of interest,such as volatility coefficients which pave a research way for other scholars.
文摘Stock price volatility is considered the main matter of concern within the investment grounds.However,the diffusivity of these prices should as well be considered.As such,proper modelling should be done for investors to stay healthy-informed.This paper suggest to model stock price diffusions using the heat equation from physics.We hypothetically state that,our model captures and model the diffusion bubbles of stock prices with a better precision of reality.We compared our model with the standard geometric Brownian motion model which is the wide commonly used stochastic differential equation in asset valuation.Interestingly,the models proved to agree as evidenced by a bijective relation between the volatility coefficients of the Brownian motion model and the diffusion coefficients of our heat diffusion model as well as the corresponding drift components.Consequently,a short proof for the martingale of our model is done which happen to hold.
文摘Tensional arguments about pension funds and mutual funds towards economic development and stimulation seem to be inevitable among policymakers and economic agents with little paid attention as in literature.This study however took a comparative significance analysis of these two independent funds in relation to economic growth in the South African economy.We hypothesize that,mutual funds are more powerful than pension funds in fostering economic growth as evidenced by some scenarios where mutual funds are trusted to encounter pension funds risks.We then used multiple linear regression model accompanied by a t-test means difference test as a measure of significance difference between the two towards economic growth.As a primer approach,we used the Pearson correlation analysis and the results were noted.Pension funds are a powerful tool of fighting poverty in economies.However,our results were not in support.Our results tend to agree with our suspicion.From all the methods used,mutual funds proved to have greater impact on stimulating economic growth(GDP)in South Africa.Therefore,South African policymakers and officials should by all ways try to support the mutual fund industry as it have traceable marks on economic growth stimulation but pension funds should not be totally ignored as they play significant roles as well such as poverty fighting and ensuring survivability of the most stressing dependent group in the economy.
