This sixth volume of Collected Papers includes 74 papers comprising 974 pages on (theoretic and applied) neutrosophics, written between 2015-2021 by the author alone or in collaboration with the following 121 co-authors from 19 countries: Mohamed Abdel-Basset, Abdel Nasser H. Zaied, Abduallah Gamal, Amir Abdullah, Firoz Ahmad, Nadeem Ahmad, Ahmad Yusuf Adhami, Ahmed Aboelfetouh, Ahmed Mostafa Khalil, Shariful Alam, W. Alharbi, Ali Hassan, Mumtaz Ali, Amira S. Ashour, Asmaa Atef, Assia Bakali, Ayoub Bahnasse, A. A. Azzam, Willem K.M. Brauers, Bui (...) Cong Cuong, Fausto Cavallaro, Ahmet Çevik, Robby I. Chandra, Kalaivani Chandran, Victor Chang, Chang Su Kim, Jyotir Moy Chatterjee, Victor Christianto, Chunxin Bo, Mihaela Colhon, Shyamal Dalapati, Arindam Dey, Dunqian Cao, Fahad Alsharari, Faruk Karaaslan, Aleksandra Fedajev, Daniela Gîfu, Hina Gulzar, Haitham A. El-Ghareeb, Masooma Raza Hashmi, Hewayda El-Ghawalby, Hoang Viet Long, Le Hoang Son, F. Nirmala Irudayam, Branislav Ivanov, S. Jafari, Jeong Gon Lee, Milena Jevtić, Sudan Jha, Junhui Kim, Ilanthenral Kandasamy, W.B. Vasantha Kandasamy, Darjan Karabašević, Songül Karabatak, Abdullah Kargın, M. Karthika, Ieva Meidute-Kavaliauskiene, Madad Khan, Majid Khan, Manju Khari, Kifayat Ullah, K. Kishore, Kul Hur, Santanu Kumar Patro, Prem Kumar Singh, Raghvendra Kumar, Tapan Kumar Roy, Malayalan Lathamaheswari, Luu Quoc Dat, T. Madhumathi, Tahir Mahmood, Mladjan Maksimovic, Gunasekaran Manogaran, Nivetha Martin, M. Kasi Mayan, Mai Mohamed, Mohamed Talea, Muhammad Akram, Muhammad Gulistan, Raja Muhammad Hashim, Muhammad Riaz, Muhammad Saeed, Rana Muhammad Zulqarnain, Nada A. Nabeeh, Deivanayagampillai Nagarajan, Xenia Negrea, Nguyen Xuan Thao, Jagan M. Obbineni, Angelo de Oliveira, M. Parimala, Gabrijela Popovic, Ishaani Priyadarshini, Yaser Saber, Mehmet Șahin, Said Broumi, A. A. Salama, M. Saleh, Ganeshsree Selvachandran, Dönüș Șengür, Shio Gai Quek, Songtao Shao, Dragiša Stanujkić, Surapati Pramanik, Swathi Sundari Sundaramoorthy, Mirela Teodorescu, Selçuk Topal, Muhammed Turhan, Alptekin Ulutaș, Luige Vlădăreanu, Victor Vlădăreanu, Ştefan Vlăduţescu, Dan Valeriu Voinea, Volkan Duran, Navneet Yadav, Yanhui Guo, Naveed Yaqoob, Yongquan Zhou, Young Bae Jun, Xiaohong Zhang, Xiao Long Xin, Edmundas Kazimieras Zavadskas. (shrink)

This twelfth volume of Collected Papers includes 86 papers comprising 976 pages on Neutrosophics Theory and Applications, published between 2013-2021 in the international journal and book series “Neutrosophic Sets and Systems” by the author alone or in collaboration with the following 112 co-authors (alphabetically ordered) from 21 countries: Abdel Nasser H. Zaied, Muhammad Akram, Bobin Albert, S. A. Alblowi, S. Anitha, Guennoun Asmae, Assia Bakali, Ayman M. Manie, Abdul Sami Awan, Azeddine Elhassouny, Erick González-Caballero, D. Dafik, Mithun Datta, Arindam Dey, (...) Mamouni Dhar, Christopher Dyer, Nur Ain Ebas, Mohamed Eisa, Ahmed K. Essa, Faruk Karaaslan, João Alcione Sganderla Figueiredo, Jorge Fernando Goyes García, N. Ramila Gandhi, Sudipta Gayen, Gustavo Alvarez Gómez, Sharon Dinarza Álvarez Gómez, Haitham A. El-Ghareeb, Hamiden Abd El-Wahed Khalifa, Masooma Raza Hashmi, Ibrahim M. Hezam, German Acurio Hidalgo, Le Hoang Son, R. Jahir Hussain, S. Satham Hussain, Ali Hussein Mahmood Al-Obaidi, Hays Hatem Imran, Nabeela Ishfaq, Saeid Jafari, R. Jansi, V. Jeyanthi, M. Jeyaraman, Sripati Jha, Jun Ye, W.B. Vasantha Kandasamy, Abdullah Kargın, J. Kavikumar, Kawther Fawzi Hamza Alhasan, Huda E. Khalid, Neha Andalleb Khalid, Mohsin Khalid, Madad Khan, D. Koley, Valeri Kroumov, Manoranjan Kumar Singh, Pavan Kumar, Prem Kumar Singh, Ranjan Kumar, Malayalan Lathamaheswari, A.N. Mangayarkkarasi, Carlos Rosero Martínez, Marvelio Alfaro Matos, Mai Mohamed, Nivetha Martin, Mohamed Abdel-Basset, Mohamed Talea, K. Mohana, Muhammad Irfan Ahamad, Rana Muhammad Zulqarnain, Muhammad Riaz, Muhammad Saeed, Muhammad Saqlain, Muhammad Shabir, Muhammad Zeeshan, Anjan Mukherjee, Mumtaz Ali, Deivanayagampillai Nagarajan, Iqra Nawaz, Munazza Naz, Roan Thi Ngan, Necati Olgun, Rodolfo González Ortega, P. Pandiammal, I. Pradeepa, R. Princy, Marcos David Oviedo Rodríguez, Jesús Estupiñán Ricardo, A. Rohini, Sabu Sebastian, Abhijit Saha, Mehmet Șahin, Said Broumi, Saima Anis, A.A. Salama, Ganeshsree Selvachandran, Seyed Ahmad Edalatpanah, Sajana Shaik, Soufiane Idbrahim, S. Sowndrarajan, Mohamed Talea, Ruipu Tan, Chalapathi Tekuri, Selçuk Topal, S. P. Tiwari, Vakkas Uluçay, Maikel Leyva Vázquez, Chinnadurai Veerappan, M. Venkatachalam, Luige Vlădăreanu, Ştefan Vlăduţescu, Young Bae Jun, Wadei F. Al-Omeri, Xiao Long Xin.‬‬‬‬‬‬. (shrink)

This article presents a new methodology for pricing and hedging commodity derivatives. A generic model calibration is provided. The calibration procedure consists of an offline step where the mean reversion rates, the ratio of the long and short factor volatilities and the correlation between the long and short factors are determined via historical analysis. This offline step is performed relatively infrequently. There’s also an online step of the calibration which happens every time the model is used to price (...) an option or to simulate price paths. Empirical study shows that the model is quite accurate. (shrink)

Trong thảo luận ngắn này, xin giới thiệu lại một bài điều tra tổng hợp về trường hợp cơ quan quản lý Scotland đã thống nhất với ý kiến của các đại diện công nghiệp nuôi trồng-chế biến cá hồi nhằm nới lỏng kiểm soát hóa chất diệt ký sinh, vốn được biết là độc hại (gọi chung là pesticide), có tên emamectin. Cụ thể các giới hạn sử dụng được nới lỏng để tăng 23 lần, sau các “thương thảo (...) trong bóng tối” với đại diện giới chủ. Bài báo đăng trên Ferret, ngày 21-5-2023, ký tên tác giả R. Edwards. (shrink)

Critics of Confucianism have long been concerned with its emphasis on filial piety (xiao 孝). Among the many traditional strictures of this concept are demands that children serve their parents vigilantly, to do so with the proper outward respect and demeanor, and to yield to parental wishes when personal desires come into conflict with them. Critics have found this problematic as an orientation not only toward one’s parents but also to authority figures more generally. One common response to (...) such criticism is to claim that it misunderstands or misrepresents the true nature of filial piety, which demands not only that one serve, respect, and yield to one’s parents, but also remonstrate with them when they may be veering off the path of what is right and proper. This response, though popular, is unconvincing. First, the passages used to support this claim suggest that remonstration should be conveyed lightly and only when it will not engender bad feelings or estrangement, which may not work with stubborn or insensitive parents. Second, other passages from the same texts suggest that remonstration is not to be done at all, and that pleasing one’s parents is most paramount whether children should remonstrate or accept their parents’ decisions. Lastly, the strongest endorsements for remonstration come from a text of comparatively minor influence, the Xunzi. I conclude that critics’ concerns about blind obedience to authority should not be easily dismissed and deserve serious consideration. (shrink)

Comparative philosophy between two disparate cultural-philosophic traditions, such as Western and Chinese philosophy, has become a new trend of philosophical fashion in the late twentieth and early twenty-first centuries. Having learned from the past, contemporary comparative philosophers cautiously safeguard their comparative studies against two potential pitfalls, namely cultural universalism and cultural relativism. The Orientalism that assumed the superiority of the Occidental has become a memory of the past. The historical pendulum has apparently swung to the other extreme. The more recent (...) "reverse Orientalism" has started to reclaim the superiority of the Oriental. We have even been told that the twenty-first... (shrink)

This article proposes a term structure model for dual-currency interest rate markets. The model assumes that volatility is a deterministic function of time alone. This volatility structure can reduce the dimension of the required state variables. An important special case is presented, which corresponds essentially to a Vasicek/Hull-White yield curve model in each currency. The model is very useful for pricing cross-currency derivatives.

Ratio, Volume 34, Issue 4, Page 303-311, December 2021.

Despite Donald Davidson's influential criticism of the very notion of conceptual schemes, the notion continues enjoying its popularity in contemporary philosophy and, accordingly, conceptual relativism is still very much alive. There is one major reason responsible for Davidson's failure which has not been widely recognized: What Davidson attacks fiercely is not the very notion, but a notion of conceptual schemes, namely, the Quinean notion of conceptual schemes and its underlying Kantian scheme-content dualism. However, such a notion simply cannot carry the (...) weight of conceptual relativism for it does not catch the essences of conceptual relativism. Consequently, I argue that the very notion of conceptual schemes and conceptual relativism have survived Davidson's attack. Therefore, the failure of the Quinean notion of conceptual schemes and Kantian scheme-content dualism, even if Davidson can claim victory, does not mark the end of the very notion of conceptual schemes.[ABSTRACT FROM AUTHOR]. (shrink)

Lack of a historical sense is the hereditary defect of philosophers. … So what is needed from now on is historical philosophizing, and with it the virtue of modesty.

Kuhn's alleged taxonomic interpretation of incommensurability is grounded on an ill defined notion of untranslatability and is hence radically incomplete. To supplement it, I reconstruct Kuhn's taxonomic interpretation on the basis of a logical-semantic theory of taxonomy, a semantic theory of truth-value, and a truth-value conditional theory of cross-language communication. According to the reconstruction, two scientific languages are incommensurable when core sentences of one language, which have truth values when considered within its own context, lack truth values when considered within (...) the context of the other due to the unmatchable taxonomic structures underlying them. So constructed, Kuhn's mature interpretation of incommensurability does not depend upon the notion of truth-preserving translatability, but rather depends on the notion of truth-value-status-preserving cross-language communication. The reconstruction makes Kuhn's notion of incommensurability a well grounded, tenable and integrated notion.Author Keywords: Incommensurability; Thomas Kuhn; Taxonomic structures; Lexicons; Truth-value; Untranslatability; Cross-language communication. (shrink)

The concept of vulnerability has been renewed in meaning and importance over recent decades. Scholars such as Judith Butler, Martha Fineman and Pamela Sue Anderson have endeavored to redeem vulnerability from its traditional signification as a negative individual condition, and to reveal the positive meaning of vulnerability as a transformative call for solidarity, equality and love. In this paper we examine the newly constructed positive understanding of vulnerability, and argue that the current way of pursuing this positive understanding affirms a (...) merely functional positivity. In the recent accounts, vulnerability is still a status to avoid, yet functions positively as a corrective force to the environment that produces vulnerability. We will try to find an essential way of designating the positivity of vulnerability by revisiting the philosophical discussion on vulnerability in Emmanuel Levinas. We will argue that Levinas’s notion of vulnerability is positive in a sense which goes beyond the purely functional; it is seen as essential for his definition of humanity. Yet compared to the contemporary discussion, Levinas’s notion of vulnerability lacks a direct social political meaning. We will tentatively explore how the essential positivity drawn from Levinas can provide a new way to construct the political significance of vulnerability. (shrink)

Introduction: The development of advanced sewage technologies empowers the industry to produce high-quality recycled water, which greatly influences human’s life and health. Thus, this study investigates the mechanism of individuals’ adoption of recycled water from the technology adoption perspective. -/- Methods: Employing the mixed method of structural equation modeling and artificial neural network analysis, we examined a research model developed from the extended Unified Theory of Acceptance and Use of Technology (UTAUT2) framework. To examine the research model, this study employs (...) a leading web-survey company (Sojump) to collect 308 valid samples from the residents in mainland China. -/- Results: The structural equation modeling results verified the associations between the six predictors (performance expectancy, effort expectancy, social influence, facilitating conditions, environmental motivation, and price value), individuals’ cognitive and emotional attitudes, and acceptance intention. The artificial neural network analysis validates and complements the structural equation modeling results by unveiling the importance rank of the significant determinants of the acceptance decisions. -/- Discussion: The study provides theoretical implications for recycled water research and useful insights for practitioners and policymakers to reduce the environmental hazards of water scarcity. (shrink)

Why is mutual understanding between two substantially different comprehensive language communities often problematic and even unattainable? To answer this question, the author first introduces a notion of presuppositional languages. Based on the semantic structure of a presuppositional language, the author identifies a significant condition necessary for effective understanding of a language: the interpreter is able to effectively understand a language only if he/she is able to recognize and comprehend its metaphysical presuppositions. The essential role of the knowledge of metaphysical presuppositions (...) in understanding is further strengthened by developing a truth-value conditional theory of understanding. It is concluded that if the interpreter approaches an incompatible alien language from the standpoint of the interpreter's own language by projecting the metaphysical presuppositions of his/her own language upon the alien language, then the mutual understanding between the two language communities is doomed to failure. (shrink)

There has been a movement aiming to teach agents about their privilege by making the information about their privilege as costless as possible. However, some argue that in risk-sensitive frameworks, such as Lara Buchak’s (2013), it can be rational for privileged agents to shield themselves from learning about their privilege, even if the information is costless and relevant. This threatens the efficacy of these information-access efforts in alleviating the problem of elite-group ignorance. In response, I show that even within the (...) same framework, in this case David Kinney and Liam Kofi Bright’s (2021), the rationality of this information avoidance rests on shaky ground in practice. In this framework, whether an agent should avoid information depends on the precise details of (1) how relevant they expect the information to be, (2) their priors about the value of various options, and (3) their risk attitudes. The model suggests that the rationality of elite-group ignorance is a function of structural factors that are pervasive but nonetheless not insurmountable, thus offering a way out of pessimism about elite group education. (shrink)

斯特劳逊 （Strawson）的语义预设概念在语义学和语言哲学研究上颇有建树。尽管如此，语义预设概念一直遭受来自各方面的批判。概要说来，对语义预设概念之批判主要来自两个方面：其一，试图抽去语义预设概念的逻辑基础 ，即非真值概念 (the notion of truthvaluelessness)，从而达到间接地拒斥语义预设概念之目的。其二，直接批判语义预设概念本身。他们或者论证此概念在理论上不自恰或微不足道，或者断定即使此概念本身在理论上自恰，但实为一空 洞无物之概念。因为我们根本找任何一个语义预设的具体例证。所以，语义预设概念不具任何真正的哲学意义。它只是一个当代神话，理应拒斥。 -/- 玻尔(S. Ber)和莱肯(W. Lycan)对语义预设概念的批判集中代表了以上两个方面。据我所知，迄今不曾有人对他们的批判予以全面和公正的反驳，以致于许多人人云亦云，使得他们的论点至今颇有影响。给予玻尔和莱恩的批判以全面反驳乃本文初 衷。于此相关，我以为很有必要澄清对语义预设概念的诸多误解，从而确立一个理论上自恰，实际上可行，和确有实质性内容的语义预设概念。基于以上考虑，我对语义预设概念批判之反驳包括正 反两个方面。在第二节，我试图建立一个自恰，完备，非庸俗的语义预设概念。基于这一概念，第三节对玻尔和莱恩反对语义预设的两个核心批判予以全面反驳。第四节着重辩护非真值概念。本文的最后结论是：各种批判并未损 伤斯特劳逊的语义预设概念的精髓。语 义预设概念非但不是一个当代神话，而且具有重大哲学意义。 .

This paper presents a new model for pricing OTC derivatives subject to collateralization. It allows for collateral posting adhering to bankruptcy laws. As such, the model can back out the market price of a collateralized contract. This framework is very useful for valuing outstanding derivatives. Using a unique dataset, we find empirical evidence that credit risk alone is not overly important in determining credit-related spreads. Only accounting for both collateral arrangement and credit risk can sufficiently explain unsecured credit costs. This (...) finding suggests that failure to properly account for collateralization may result in significant mispricing of derivatives. We also empirically gauge the impact of collateral agreements on risk measurements. Our findings indicate that there are important interactions between market and credit risk. (shrink)

Both motivational internalism and externalism need to explain why sometimes moral judgments tend to motivate us. In this paper, I argue that Dreier’ second-order desire model cannot be a plausible externalist alternative to explain the connection between moral judgments and motivation. I explain that the relevant second-order desire is merely a constitutive requirement of rationality because that desire makes a set of desires more unified and coherent. As a rational agent with the relevant second-order desire is disposed towards coherence, she (...) will have some motivation to act in accordance with her moral judgments. Dreier’s second-order desire model thus collapses into a form of internalism and cannot be a plausible externalist option to explain the connection between moral judgments and motivation. (shrink)

According to the accepted translation-failure interpretation, the problem of incommensurability involves the nature of the meaning-referential relation between scientific languages. The incommensurability thesis is that some competing scientific languages are mutually untranslatable due to the radical variance of meaning or/and reference of the terms they employ. I argue that this interpretation faces many difficulties and cannot give us a tenable, coherent, and integrated notion of incommensurability. It has to be rejected. ;On the basis of two case studies, I find that (...) the confrontations between many classical incommensurable languages are not confrontations between two untranslatable languages with different distribution of truth values, but rather the confrontations between incompatible fundamental presuppositions at the ontological level. We can always identify a truth-value gap between two incommensurable languages. Such a truth-value gap indicates a communication breakdown between the two language communities on the one hand, and is caused by the incompatible fundamental presuppositions underlying them on the other. ;I thereby identify the truth-value functional relationship between sentences, instead of the meaning-referential relationship between terms, as the dominant semantic relation between two incommensurable languages. According to my presuppositional interpretation of incommensurability, the real secret of incommensurability lies in the ontological setup of two competing presuppositional languages. When two presuppositional languages with incompatible factual commitments encounter with each other, the confrontation leads to a truth-value gap, and consequently a communication breakdown between them. Formally put, two scientific languages are incommensurable when core sentences of one language, which have truth values when considered within its own context, lack truth values when considered within the context of the other due to an ontological gap between them. ;The presuppositional interpretation makes many significant contributions to the discussion of the issue of incommensurability and the related metaphysical and epistemological issues: It confirms the existence of the phenomenon of incommensurability and makes it metaphysically and epistemologically significant. It establishes the tenability and integrity of the notion of incommensurability. It avoids many alleged unattractive epistemological and metaphysical consequences of the translation-failure interpretation. (shrink)

This paper presents a Least Square Monte Carlo approach for accurately calculating credit value adjustment (CVA). In contrast to previous studies, the model relies on the probability distribution of a default time/jump rather than the default time itself, as the default time is usually inaccessible. As such, the model can achieve a high order of accuracy with a relatively easy implementation. We find that the valuation of a defaultable derivative is normally determined via backward induction when their payoffs could be (...) positive or negative. Moreover, the model can naturally capture wrong or right way risk. (shrink)

Moral disagreement arises when two agents assign conflicting truth values to a moral statement, such as whether lying is ever permissible. While moral universalists argue that such disagreements result from at least one party being mistaken about an objective moral truth, their approach faces an epistemological challenge: the need to identify the true moral theory. In contrast, moral relativists claim that the truth of moral statements depends on the perspectives of attributors, enabling coexistence but raising questions about how to justify (...) resolutions across divergent perspectives. This essay proposes an alternative explanation: approximate interpretation. This approach avoids the universalists' epistemological burden of finding objective moral truths while offering a framework for justifiable resolutions based on the quality of interpretative approximations. Unlike relativists, who maintain that truth values do not converge, and universalists, who argue they do, this explanation remains neutral on the convergence debate. The essay demonstrates the orthogonality between the universalism-relativism debate and the challenge of explaining moral disagreements, concluding that neither universalism nor relativism offers a definitive resolution to the phenomenon of widespread moral disagreement. (shrink)

In this thesis, I explore motivational internalism and externalism, which concern the relationship between moral judgments and motivation. I first introduce the basic terms and different forms of internalism and externalism, including the externalist objections to internalism based on the famous counterexamples. I then argue against externalism by defending and developing Michael Smith’s fetishism argument. I not only respond to the externalist objections to the fetishism argument but also further argue against different externalist explanations of moral motivation that intend to (...) avoid the fetishism charge. Finally, I re-examine different forms of internalism in order to argue for a new form of internalism that can better preserve our internalist intuitions whilst accommodating the externalist counterexamples. My ultimate conclusion will be that the most plausible form of internalism to accept is constitutional, unconditional, relatively strong, direct internalism that is formulated in terms of dispositional desires. (shrink)

In this essay, we will follow Tang Junyi’s lead in exploring issues related to Chinese diaspora and Chinese philosophy. While we largely endorse Tang’s call for overseas Chinese to establish themselves in their adopted lands, we will argue for a more nuanced view on the identity of Chinese people outside China: they are not marginalized individuals scattered out of “homeland” China, rather they are people legitimately established in their own respective countries. In this connection, we will also advance a view (...) of future Chinese philosophy as a world philosophy that takes roots in China as well as in the world at large. In our view, although Chinese immigrant thinkers in the past century have played a major role in promoting Chinese philosophy outside China, the importance of such a role is likely to decline along with the success of Chinese philosophy becoming a world philosophy. (shrink)

on how to justify the rationality of sciences.

According to the received translational interpretation of incommensurability, incommensurability is viewed as untranslatability due to radical variance of meaning or reference of the terms in two competing scientific languages. The author argues that the translational approach to incommensurability does not effectively clarify the concept of incommensurability. Since it cannot provide us with tenable, integrated concept of incommensurability, it should be rejected.

Against the received translation-failure interpretation, this book presents a presuppositional interpretation of incommensurability, that is, the thesis of incommensurability as cross-language communication breakdown due to the incompatible metaphysical presuppositions underlying two competing presuppositional languages, such as scientific languages. This semantically sound, epistemologically well-established, and metaphysically profound interpretation not only affirms the tenability of the notion of incommensurability and confirms the reality of the phenomenon of incommensurability, but also makes some significant contributions to the discussion of many related issues, such as (...) the notion of conceptual schemes, the notion of truth-value status and truth-value conditions, and the issue of cross-language understanding and communication. (shrink)

This article presents a comprehensive framework for valuing financial instruments subject to credit risk. In particular, we focus on the impact of default dependence on asset pricing, as correlated default risk is one of the most pervasive threats in financial markets. We analyze how swap rates are affected by bilateral counterparty credit risk, and how CDS spreads depend on the trilateral credit risk of the buyer, seller, and reference entity in a contract. Moreover, we study the effect of collateralization on (...) valuation, since the majority of OTC derivatives are collateralized. The model shows that a fully collateralized swap is risk-free, whereas a fully collateralized CDS is not equivalent to a risk-free one. (shrink)

The LIBOR Market Model has become one of the most popular models for pricing interest rate products. It is commonly believed that Monte-Carlo simulation is the only viable method available for the LIBOR Market Model. In this article, however, we propose a lattice approach to price interest rate products within the LIBOR Market Model by introducing a shifted forward measure and several novel fast drift approximation methods. This model should achieve the best performance without losing much accuracy. Moreover, the calibration (...) is almost automatic and it is simple and easy to implement. Adding this model to the valuation toolkit is actually quite useful; especially for risk management or in the case there is a need for a quick turnaround. (shrink)

The current discussions of conceptual schemes and related topics are misguided; for they have been focused too much on the truth-conditional notions of meaning/concepts and translation/interpretation in Tarski's style. It is exactly due to such a Quinean interpretation of the notion of conceptual schemes that the very notion of conceptual schemes falls prey to Davidson's attack. We argue that what should concern us in the discussions of conceptual schemes and related issues, following the initiatives of I. Hacking, T. Kuhn, and (...) N. Rescher, is not the truth-values of assertions, but rather the truthvalue-status of the sentences used to make the assertions. This is because the genuine conceptual innovation between alternative theories/languages does not lie in differences in determining the truth-values of their sentences, but turns on whether these sentences have truth-values when considered within the context of a competing one. The core of conceptual relativism does not consist in the claim that different conceptual schemes may yield incommensurable truth claims, but rather that different conceptual schemes may yield incompatible truth-value-status and therefore lead to distinct perceptions of reality. Conceptual schemes are no longer seen as sentential languages consisting of a set of sentences accepted as true, but rather seen as metaphysical presuppositions of presuppositional languages.[ABSTRACT FROM AUTHOR]. (shrink)

This paper is an attempt to clarify the notion of semantic presupposition and to refute Böer and Lycan's critique of that notion. The author presents a feasible and coherent formal definition of semantic presupposition after examining several popular definitions of the notion. In terms of this definition, two central arguments against semantic presupposition presented by Böer and Lycan are analyzed and responded to with care. It is concluded that the notion of semantic presupposition is not empty but rather is philosophically (...) interesting and fruitful. (shrink)

It is a common wisdom that linguistic communication is different from linguistic understanding. However, the distinction between communication and understanding is not as clear as it seems to be. It is argued that the relationship between linguistic communication and understanding depends upon the notions of understanding and communication involved. Thinking along the line of propositional understanding and informative communication, communication can be reduced to mutual understanding. In contrast, operating along the line of hermeneutic understanding and dialogical communication, the process of (...) understanding is in essence a process of communication. However, dialogical communication should not be confused with propositional understanding. Conversely, hermeneutic understanding should not be confused with informative communication either. The former is dialogical in nature while the latter is monological. (shrink)

Equity-linked securities with a guaranteed return become popular in a volatile market environment. This paper presents a new model for valuing guaranteed equity-linked notes. We consider a security whose value depends on the performance of a basket of equities averaged over certain points in time, but that is floored by a guaranteed amount. We show that the security’s price is given by the sum of the guaranteed amount plus the price of an Asian style option on the basket above. The (...) model provides analytical formulas for the security’s price as well as for corresponding hedge ratios; these respective formulas appear to be accurate over a wide range of underlying security parameter values, based on numerical testing against a Monte Carlo benchmark, Finally, we apply our method to value a type of segregated fund with a maturity guarantee. (shrink)

The current discussions of conceptual schemes and related topics are misguided; for they are based on a tacit assumption that the difference between two schemes consists in the different distributions in truth-values. I argue that what should concern us, in the discussions of conceptual schemes and related issues, is not truth-values of assertions, but rather the truth-value-status of the sentences used to make the assertions. This is because the genuine conceptual innovation between alternative theories or languages does not lie in (...) differences in determining truth-values of their sentences, but turns on whether these sentences have truth-values when considered within the context of a competing one. This new interpretation of the notion of conceptual schemes, which I refer to as presuppositional languages, is not only good in itself—for establishing the intelligibility and tenability of the notion—but quite beneficial in its effect on other related issues. (shrink)

What the authors attempt to address in this paper is a Kantian question: not whether, but how is cross -cultural understanding possible? And specifically, what is a more effective approach for cross -cultural understanding? The answer lies in an analysis of two different models of cross -cultural understanding, that is, propositional and hermeneutic understanding. To begin with, the author presents a linguistic interpretation of culture, i.e., a culture as a linguistically formulated and transmitted symbolic system with its conceptual core as (...) a scheme of basic cultural presuppositions, which it referred to as a cultural language. After exploring the essential role of cultural presuppositions in cross -cultural understanding, the author discusses the traditional model of cross -cultural understanding, namely, the propositional model. Through critically examining the two popular versions of the propositional model, i.e., the projective approach and the adoptive approach to cross -cultural understanding, it is found that cross -cultural propositional understanding is doomed to failure. To move us beyond the absolutism -relativism trap embedded within propositional understanding, the author first introduces and discusses Hans-Georg Gadamer’s hermeneutic understanding, and then applies Hans-Georg Gadamer’s hermeneutic model of understanding to cross -cultural understanding. It is finally concluded that cross -cultural understanding is essentially hermeneutic—including the case of cultural learning, not propositional. Therefore, cross -cultural understanding is hermeneutically possible. (shrink)

D. Davidson argues that the existence of alternative conceptual schemes presupposes the Kantian scheme-content dualism, which requires a scheme-neutral empirical content and a fixed, sharp schemecontent distinction. The dismantlement of such a Kantian scheme-content dualism, which Davidson calls “the third dogma of empiricism”, would render the notion of alternative conceptual schemes groundless. To counter Davidson’s attack on the notion of alternative conceptual schemes, I argue that alternative conceptual schemes neither entail nor presuppose the Kantian scheme-content dualism. On the contrary, it (...) is exactly the abandonment of the concept-neutral content and the denial of a fixed, absolute scheme-content distinction that turns the Kantian conceptualabsolutism upside down and thus makes alternative conceptual schemes possible. Proposing common-sense experience as the empirical content of alternative schemes, I construct and defend a non-Kantian scheme-content dualism based on a non-fixed, relative scheme-content distinction. The proposed non-Kantian scheme-content dualism is not only “innocent” enough to be immune from Davidson’s charge of the third dogma of empiricism, but also “solid” enough to be able to sustain alternative conceptual schemes. I conclude that in terms of our conceptual schemes, we are connected to the world as closely as possible; only through conceptual schemes can we be connected to the world. (shrink)

On the basis of the distinction between logical and factual probability, epistemic justification is distinguished from logical justification of induction. It is argued that, contrary to the accepted interpretation of Hume, Hume believes that inductive inferences are epistemically legitimate and justifiable. Hence the beliefs arrived at via (correct) inductive inferences are rational beliefs. According to this interpretation, Hume is not a radical skeptic about induction.

A combinatorial analysis of intrinsicality takes intrinsic properties to be independent of accompaniment: a property is intrinsic only if it is possible for a lonely or an accompanied thing to have it or lack it (I). Cameron argues that the combinatorial analysis in Langton & Lewis (1998) faces an epistemic circularity, which makes (I) suspicious. In this paper, I examine two approaches to free the combinatorial analyses from the circularity and find them all fail. Then I provide an outline of (...) an argument for (I) by appealing to the grounding analyses of intrinsicality, which shows an advantage of the grounding analyses over the combinatorial ones. (shrink)

What is the ontological status of facts? Are facts linguistic or extra-linguistic entities? If facts are extra-linguistic entities, are they mind-independent or relative to languages, theories or conceptual schemes? Based on a minimal definition of facts, the author argues that what are specified by true statements are not identical to true propositions expressed, so facts are not linguistic entities. Furthermore, what are specified by true statements are not to which a true statement corresponds, so facts are not mind-independent, either as (...) concrete entities in the universe or as abstract entities in the world as it is. Last, the author presents an internal factual realist answer: although facts are neither in the world as it is, nor in a language, facts are real and exist in a world under consideration. A fact, as a non-linguistic correlate of a true statement of a language, exists in a world specified by the language. (shrink)

This paper argues that the reduced-form jump diffusion model may not be appropriate for credit risk modeling. To correctly value hybrid defaultable financial instruments, e.g., convertible bonds, we present a new framework that relies on the probability distribution of a default jump rather than the default jump itself, as the default jump is usually inaccessible. As such, the model can back out the market prices of convertible bonds. A prevailing belief in the market is that convertible arbitrage is mainly due (...) to convertible underpricing. Empirically, however, we do not find evidence supporting the underpricing hypothesis. Instead, we find that convertibles have relatively large positive gammas. As a typical convertible arbitrage strategy employs delta-neutral hedging, a large positive gamma can make the portfolio highly profitable, especially for a large movement in the underlying stock price. (shrink)

This article presents a new model for valuing a credit default swap (CDS) contract that is affected by multiple credit risks of the buyer, seller and reference entity. We show that default dependency has a significant impact on asset pricing. In fact, correlated default risk is one of the most pervasive threats in financial markets. We also show that a fully collateralized CDS is not equivalent to a risk-free one. In other words, full collateralization cannot eliminate counterparty risk completely in (...) the CDS market. (shrink)

During the lifetime of a structured product, payment events and cancellation events mainly affect the value of the option. This article presents a model for pricing generic cancellable option. The model is used to build most common kinds of cancellation schedules and compute the cancellation probability.

This article presents a generic model for pricing financial derivatives subject to counterparty credit risk. Both unilateral and bilateral types of credit risks are considered. Our study shows that credit risk should be modeled as American style options in most cases, which require a backward induction valuation. To correct a common mistake in the literature, we emphasize that the market value of a defaultable derivative is actually a risky value rather than a risk-free value. Credit value adjustment (CVA) is also (...) elaborated. A practical framework is developed for pricing defaultable derivatives and calculating their CVAs at a portfolio level. (shrink)

This paper presents a new model for valuing hybrid defaultable financial instruments, such as, convertible bonds. In contrast to previous studies, the model relies on the probability distribution of a default jump rather than the default jump itself, as the default jump is usually inaccessible. As such, the model can back out the market prices of convertible bonds. A prevailing belief in the market is that convertible arbitrage is mainly due to convertible underpricing. Empirically, however, we do not find evidence (...) supporting the underpricing hypothesis. Instead, we find that convertibles have relatively large positive gammas. As a typical convertible arbitrage strategy employs delta-neutral hedging, a large positive gamma can make the portfolio highly profitable, especially for a large movement in the underlying stock price. (shrink)

The one-side defaultable financial derivatives valuation problems have been studied extensively, but the valuation of bilateral derivatives with asymmetric credit qualities is still lacking convincing mechanism. This paper presents an analytical model for valuing derivatives subject to default by both counterparties. The default-free interest rates are modeled by the Market Models, while the default time is modeled by the reduced-form model as the first jump of a time-inhomogeneous Poisson process. All quantities modeled are market-observable. The closed-form solution gives us a (...) better understanding of the impact of the credit asymmetry on swap value, credit value adjustment, swap rate and swap spread. (shrink)

This paper attempts to assess the economic significance and implications of collateralization in different financial markets, which is essentially a matter of theoretical justification and empirical verification. We present a comprehensive theoretical framework that allows for collateralization adhering to bankruptcy laws. As such, the model can back out differences in asset prices due to collateralized counterparty risk. This framework is very useful for pricing outstanding defaultable financial contracts. By using a unique data set, we are able to achieve a clean (...) decomposition of prices into their credit risk factors. We find empirical evidence that counterparty risk is not overly important in credit-related spreads. Only the joint effects of collateralization and credit risk can sufficiently explain unsecured credit costs. This finding suggests that failure to properly account for collateralization may result in significant mispricing of financial contracts. We also analyze the difference between cleared and OTC markets. (shrink)

This article presents a new model for valuing financial contracts subject to credit risk and collateralization. Examples include the valuation of a credit default swap (CDS) contract that is affected by the trilateral credit risk of the buyer, seller and reference entity. We show that default dependency has a significant impact on asset pricing. In fact, correlated default risk is one of the most pervasive threats in financial markets. We also show that a fully collateralized CDS is not equivalent to (...) a risk-free one. In other words, full collateralization cannot eliminate counterparty risk completely in the CDS market. (shrink)