Description: This paper develops a new technique, which allows the analyst to maximally use all thte historical interest rate information available in forecasting interest rates. Interest rates' daily change do not follow a stationary random process over long time periods. Instead, the process is comprised of stationary periods, each a few years long, with relatively short transitional periods between different stationary periods.

Description: This is the abstract of the paper A Space Marching Finite Difference Algorithm for Valuing American. In this paper, the author considers the problem of valuating American options written on assets that pay continuous dividends with unknown optimal exercise boundary. The numerical solution of the associated free boundary value problem is investigated. This research has been partialy supported by the actuarial faculty fund at the Ohio State University.

Description: Companies need to learn to plan for uncertainty by taking into consideration downturns, not just an environment of moderation and occasional booms.