A note on the dynamics of incentive contracts
โ Scribed by Ching-jen Sun
- Publisher
- Springer-Verlag
- Year
- 2010
- Tongue
- English
- Weight
- 139 KB
- Volume
- 40
- Category
- Article
- ISSN
- 0020-7276
No coin nor oath required. For personal study only.
๐ SIMILAR VOLUMES
A Futures Trading Commission is ready to consider seriously the buying and selling of commodity options on domestic futures exchanges. It is therefore useful to examine the desirable characteristics such options might possess, and that is the purpose of this article. First, the "standard" commodity
A mathematical model is used to analyze how to structure on-time delivery incentives in a contract between a buyer and a single supplier of raw materials when early shipments are forbidden. The buyer's choice of incentives takes the supplier's cost-minimizing response to incentives into account. The
n his note in the spring 1982 issue of this journal, Asay (1982) discusses the I pricing of commodity option contracts. The purpose of his note is to introduce the idea of a "futures" option, which, like a standard futures contract, requires no money up-front and is "marked to market" at the end of
I forward results of two option pricing models: (1) the Black and !%holes (1973) model and (2) the Black (1976) model. I argued that if the assumptions underlying the original 1973 Black-Scholes model for stock options held for commodities, their equation would also hold for commodity options as wel