The primary aim of this chapter is to outline the consensuses that have emerged in recent philosophical works tackling normative questions about responding to immoral artist’s art. While disagreement amongst philosophers is unavoidable, there is actually much agreement on the ethics of media consumption. How should we evaluate immoral artist’s art? Philosophers generally agree that we should not always separate the artist from the art. How should we engage with immoral artist’s art? Philosophers generally agree that we should not always (...) reflexively turn away from them. In turn, these responses reveal that moral value is not autonomous from aesthetic value, and neither dominates the other. The secondary aim of this chapter is to explore the ramifications of this revelation. I argue that, in addition to an ethics of media consumption, we need an aesthetics of media consumption that is fundamentally social rather than solitary. (shrink)

In this contribution to the symposium on Quill Kukla's _City Living_, I argue that the "objective properties" invisibly built into playgrounds can limit children's development of their agency. Playgrounds may seem insignificant because play may seem insignificant. However, playgrounds are where children develop as agents: it is through play that they learn to make decisions about their own bodies, express their own values, and negotiate with others. Yet at the playground, there is co-dependence between social practice and material object: the (...) latent surveillance by adults enforces and reinforces the rules that have been built into equipment like slides. Social and spatial inequalities can constitute self-amplifying feedback loops that sustain oppressive systems. Playgrounds do not merely reflect the social fact that children’s autonomy is not always taken seriously, they also condition and constitute this social fact. (shrink)

Children sometimes lose themselves in make-believe games. Actors sometimes lose themselves in their roles. Readers sometimes lose themselves in their books. From people's introspective self-reports and phenomenological experiences, these immersive experiences appear to differ from ordinary experiences of simply playing a game, simply acting out a role, and simply reading a book. What explains the difference? My answer: attention. -/- [Unpublishable 2007-2017. This paper was referenced in Liao and Doggett (2014).].

David Lewis argues that centered worlds give us a way to capture de se, or self-locating, contents in philosophy of language and philosophy of mind. In recent years, centered worlds have also gained other uses in areas ranging widely from metaphysics to ethics. In this paper, I raise a problem for centered worlds and discuss the costs and benefits of different solutions. My investigation into the nature of centered worlds brings out potentially problematic implicit commitments of the theories that employ (...) them. In addition, my investigation shows that the conception of centered worlds widely attributed to David Lewis is not only problematic, but in fact not his. (shrink)

Narrative representations can change our moral actions and thoughts, for better or for worse. In this article, I develop a theory of fictions' capacity for moral education and moral corruption that is fully sensitive to the diversity of fictions. Specifically, I argue that the way a fiction influences our moral actions and thoughts importantly depends on its genre. This theory promises new insights into practical ethical debates over pornography and media violence.

To what extent are factors that are extrinsic to the artwork relevant to judgments of artistic value? One might approach this question using traditional philosophical methods, but one can also approach it using empirical methods; that is, by doing experimental philosophical aesthetics. This paper provides an example of the latter approach. We report two empirical studies that examine the significance of three sorts of extrinsic factors for judgments of artistic value: the causal-historical factor of contagion, the ontological factor of uniqueness, (...) and the contextual factor of appreciative environment. We explore the context of appreciation by performing studies in a museum as well as the lab. We found that contagion made a difference to judgments of artistic value in both settings. These results are congruent with previous empirical research as well as recent philosophical work that defends the artistic significance of authenticity. However, uniqueness only made a difference in the lab setting, but not in the museum. This suggests that the context of appreciation may make a difference to judgments of artistic value. Of broader significance, these studies show the value of experimental philosophical aesthetics and the value of doing in situ empirical research on art. (shrink)

In “Sideways Music”, Ned Markosian uses aesthetic intuitions about temporally-rotated music to argue that the metaphysics of time is different from the metaphysics of space. In response, I use aesthetic intuitions about spatially-rotated paintings to pose a dilemma for Markosian’s argument: either he accepts the intuitions about spatially-rotated paintings, in which case he must give up on some assumptions in his argument, or he rejects intuitions about spatially-rotated paintings, in which case an analogous response can be given regarding intuitions about (...) temporally-rotated music. That is, if Markosian wants to hold on to the assumptions that underwrite his argument, then he thereby offers his opponent the resources with which to resist his conclusion. As such, Markosian’s argument cannot offer a new independent consideration for adjudicating the metaphysical debate between the Dynamic Theorist and the Spacetime Theorist. [Unpublishable 2019]. (shrink)

Issues of pretense and imagination are of central interest to philosophers, psychologists, and researchers in allied fields. In this entry, we provide a roadmap of some of the central themes around which discussion has been focused. We begin with an overview of pretense, imagination, and the relationship between them. We then shift our attention to the four specific topics where the disciplines' research programs have intersected or where additional interactions could prove mutually beneficial: the psychological underpinnings of performing pretense and (...) of recognizing pretense, the cognitive capacities involved in imaginative engagement with fictions, and the real-world impact of make-believe. In the final section, we discuss more briefly a number of other mental activities that arguably involve imagining, including counterfactual reasoning, delusions, and dreaming. (shrink)

This chapter explores the interaction between the moral value and aesthetic value of food, in part by connecting it to existing discussions of the interaction between moral and aesthetic values of art. Along the way, this chapter considers food as art, the aesthetic value of food, and the role of expertise in uncovering aesthetic value. Ultimately this chapter argues against both food autonomism (the view that food's moral value is unconnected to its aesthetic value) and Carolyn Korsmeyer's food moralism (the (...) view that moral flaws can only make food aesthetically worse). Instead, it argues for the position of food immoralism: sometimes a moral flaw can make an item of food aesthetically better. This chapter concludes by drawing out broader implications of this position for discussions on the ethics of food and discussions on the interaction between the moral and aesthetic values of art. (shrink)

We refine a line of feminist criticism of pornography that focuses on pornographic works' pernicious effects. A.W. Eaton argues that inegalitarian pornography should be criticized because it is responsible for its consumers’ adoption of inegalitarian attitudes toward sex in the same way that other fictions are responsible for changes in their consumers’ attitudes. We argue that her argument can be improved with the recognition that different fictions can have different modes of persuasion. This is true of film and television: a (...) satirical movie such as Dr. Strangelove does not morally educate in the same way as a realistic series such as The Wire. We argue that this is also true of pornography: inegalitarian depictions of sex are not invariably responsible for consumers' adoption of inegalitarian attitudes toward sex in reality. Given that pornographic works of different genres may harm in different ways, different feminist criticisms are appropriate for different genres of pornography. (shrink)

The present studies investigate morality’s influence on aesthetics and one potential moderator of that influence: genre. Study 1 finds that people’s moral evaluation positively influence their aesthetic evaluation of an artwork. Study 2 and 3 finds that this influence can be moderated by the contextual factor of genre. These results broaden our understanding of the relationship between morality and aesthetics, and suggest that models of art appreciation should take into account morality and its interaction with context. [Unpublishable 2010-2017.].

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.

For the past three years, Coronavirus-19 (Covid-19) has become one of the major global health problems. Unlike any previous virus in the past decades, Covid-19 has shown its unprecedented spreading speed, infection rate, fatality rate, etc. Under this urgent disease outbursting event, scientists around the globe, through the myriad of research and experiments, successfully developed effective vaccines. However, like many other medical innovations, Covid-19 vaccines are categorized as intellectual properties and a scarce resource. As a consequence, the citizens of developed (...) and developing countries face an imbalanced distribution of affordable vaccines. The formation of this issue is not only due to manufacturing, transportation, and other infrastructures, but also strongly correlated with aspects in the legal field, such as intellectual property rights (IPRs). With a humane common sense of vaccination many people, through comparative research method, this article aims to discuss the conflicts between the global crisis of Force Majeure and the interests of certain countries or corporations, possible solutions to resolve this conflict, and future coping strategies that ought to be published. (shrink)

Two lines of investigation into the nature of mental content have proceeded in parallel until now. The first looks at thoughts that are attributable to collectives, such as bands' beliefs and teams' desires. So far, philosophers who have written on collective belief, collective intentionality, etc. have primarily focused on third-personal attributions of thoughts to collectives. The second looks at de se, or self-locating, thoughts, such as beliefs and desires that are essentially about oneself. So far, philosophers who have written on (...) the de se have primarily focused on de se thoughts of individuals. This paper looks at where these two lines of investigations intersect: collective de se thoughts, such as bands' and teams' beliefs and desires that are essentially about themselves. There is a surprising problem at this intersection: the most prominent framework for modeling de se thoughts, the framework of centered worlds, cannot model a special class of collective de se thoughts. A brief survey of this problem's solution space shows that collective de se thoughts pose a new challenge for modeling mental content. (shrink)

We apply a familiar distinction from philosophy of language to a class of material artifacts that are sometimes said to “speak”: statues. By distinguishing how statues speak at the locutionary level versus at the illocutionary level, or what they say versus what they do, we obtain the resource for addressing two topics. First, we can explain what makes statues distinct from street art. Second, we can explain why it is mistaken to criticize—or to defend—the continuing presence of statues based only (...) on what they represent. Both explanations are driven by the same core idea: the significance of statues arises primarily from what they do, and not what they say. (shrink)

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)

In the past decade, experimental philosophy---the attempt at making progress on philosophical problems using empirical methods---has thrived in a wide range of domains. However, only in recent years has aesthetics succeeded in drawing the attention of experimental philosophers. The present paper constitutes the first survey of these works and of the nascent field of 'experimental philosophy of aesthetics'. We present both recent experimental works by philosophers on topics such as the ontology of aesthetics, aesthetic epistemology, aesthetic concepts, and imagination, as (...) well as research from other disciplines that not only are relevant to philosophy of aesthetics but also open new avenues of research for experimental philosophy of aesthetics. Overall, we conclude that the birth of an experimental philosophy of aesthetics is good news not only for aesthetics but also for experimental philosophy itself, as it contributes to broaden the scope of experimental philosophy. (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)

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 analyzing oppressive systems like racism, social theorists have articulated accounts of the dynamic interaction and mutual dependence between psychological components, such as individuals’ patterns of thought and action, and social components, such as formal institutions and informal interactions. We argue for the further inclusion of physical components, such as material artifacts and spatial environments. Drawing on socially situated and ecologically embedded approaches in the cognitive sciences, we argue that physical components of racism are not only shaped by, but also (...) shape psychological and social components of racism. Indeed, while our initial focus is on racism and racist things, we contend that our framework is also applicable to other oppressive systems, including sexism, classism, and ableism. This is because racist things are part of a broader class of oppressive things, which are material artifacts and spatial environments that are in congruence with an oppressive system. (shrink)

It is well-known that racism is encoded into the social practices and institutions of medicine. Less well-known is that racism is encoded into the material artifacts of medicine. We argue that many medical devices are not merely biased, but materialize oppression. An oppressive device exhibits a harmful bias that reflects and perpetuates unjust power relations. Using pulse oximeters and spirometers as case studies, we show how medical devices can materialize oppression along various axes of social difference, including race, gender, class, (...) and ability. Our account uses political philosophy and cognitive science to give a theoretical basis for understanding materialized oppression, explaining how artifacts encode and carry oppressive ideas from the past to the present and future. Oppressive medical devices present a moral aggregation problem. To remedy this problem, we suggest redundantly layered solutions that are coordinated to disrupt reciprocal causal connections between the attitudes, practices, and artifacts of oppressive systems. (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)

Experimental philosophy offers an alternative mode of engagement for public philosophy, in which the public can play a participatory role. We organized two public events on the aesthetics of coffee that explored this alternative mode of engagement. The first event focuses on issues surrounding the communication of taste. The second event focuses on issues concerning ethical influences on taste. -/- In this paper, we report back on these two events which explored the possibility of doing experimental philosophical aesthetics as public (...) philosophy. We set the stage by considering the significance and current state of efforts in public philosophy, and by introducing the emerging sub-discipline of experimental philosophical aesthetics. Then, we discuss the research and outreach aspects of the two events on the aesthetics of coffee. Finally, we conclude by reflecting on the prospects and potential pitfalls of experimental philosophy as public philosophy. (shrink)

There has been a long history of arguments over whether happiness is anything more than a particular set of psychological states. On one side, some philosophers have argued that there is not, endorsing a descriptive view of happiness. Affective scientists have also embraced this view and are reaching a near consensus on a definition of happiness as some combination of affect and life-satisfaction. On the other side, some philosophers have maintained an evaluative view of happiness, on which being happy involves (...) living a life that is normatively good. Within the context of this debate we consider how people ordinarily understand happiness, and provide evidence that the ordinary understanding of happiness reflects aspects of both evaluative and descriptive views. Similar to evaluative views, normative judgments have a substantive role in the ordinary understanding of happiness. Yet, similar to descriptive views, the ordinary understanding is focused on the person’s psychological states and not the overall life they actually lived. Combining these two aspects, we argue that the ordinary understanding of happiness suggests a novel view on which happiness consists in experiencing positive psychological states when one ought to. This view, if right, has implications for both philosophical and psychological research on happiness. (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)

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.

Our goal in this paper is to articulate a novel account of the ordinary concept ART. At the core of our account is the idea that a puzzle surrounding our thought and talk about art is best understood as just one instance of a far broader phenomenon. In particular, we claim that one can make progress on this puzzle by drawing on research from cognitive science on dual character concepts. Thus, we suggest that the very same sort of phenomenon that (...) is associated with ART can also be found in a broad class of other dual character concepts, including SCIENTIST, CHRISTIAN, GANGSTER, and many others. Instead of focusing narrowly on the case of ART, we try to offer a more general account of these concepts and the puzzles to which they give rise. Then, drawing on the general theory, we introduce a series of hypotheses about art concepts, and put those hypotheses to the test in three experimental studies. (shrink)

Critics across the political spectrum have worried that ordinary uses of words like 'racist', 'sexist', and 'homophobic' are becoming conceptually inflated, meaning that these expressions are getting used so widely that they lose their nuance and, thereby, their moral force. However, the charge of conceptual inflation, as well as responses to it, are standardly made without any systematic investigation of how 'racist' and other expressions condemning oppression are actually used in ordinary language. Once we examine large linguistic corpora to see (...) how these expressions are actually used, we find that English speakers have a rich linguistic repertoire for qualifying the degree to which and dimensions along which something is racist, sexist, homophobic, and so on. These facts about ordinary usage undermine the charge of conceptual inflation. Without awareness of facts about ordinary usage, theorists risk making linguistic prescriptions that are unnecessary or counterproductive. (shrink)

Chinese international students who studied in the United States received “double stigmatization” from American and Chinese authorities because of the “political othering” tactic during COVID-19. The research used a phenomenological approach to examine why and how specifically the transnational identity of Chinese international students in the United States shifted during the double stigmatization. The researcher conducted a total of three rounds of interviews with 15 Chinese international students who studied in the United States and returned to China between 2018 and (...) 2020, which culminated in 45 interviews through a longitudinal study to probe the transnational identities of this population before and during the double stigmatization; the study also examined how the mindsponge mechanism worked during the identity shifts and the interplay among stigmatization, transnational identity shifts, and the mindsponge mechanism. The study concluded that before COVID-19, Chinese international students had been stigmatized in both China and the United States. (shrink)

Where is imagination in imaginative resistance? We seek to answer this question by connecting two ongoing lines of inquiry in different subfields of philosophy. In philosophy of mind, philosophers have been trying to understand imaginative attitudes’ place in cognitive architecture. In aesthetics, philosophers have been trying to understand the phenomenon of imaginative resistance. By connecting these two lines of inquiry, we hope to find mutual illumination of an attitude (or cluster of attitudes) and a phenomenon that have vexed philosophers. Our (...) strategy is to reorient the imaginative resistance literature from the perspective of cognitive architecture. Whereas existing taxonomies of positions in the imaginative resistance literature have focused on disagreements over the source and scope of the phenomenon, our taxonomy focuses on the psychological components necessary for explaining imaginative resistance. (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)

In this chapter, we identify and present predominant debates at the intersection of ethics and imagination. We begin by examining issues on whether our imagination can be constrained by ethical considerations, such as the moral evaluation of imagination, the potential for morality’s constraining our imaginative abilities, and the possibility of moral norms’ governing our imaginings. Then, we present accounts that posit imagination’s integral role in cultivating ethical lives, both through engagements with narrative artworks and in reality. Our final topic of (...) consideration focuses on the possibility of imagination constituting or constructing new ethical or political frameworks. (shrink)

What grounds human rights? How do we determine that something is a genuine human right? This chapter offers a new answer: human beings have human rights to the fundamental conditions for pursuing a good life. The fundamental conditions for pursuing a good life are certain goods, capacities, and options that human beings qua human beings need whatever else they qua individuals might need in order to pursue a characteristically good human life. This chapter explains how this Fundamental Conditions Approach is (...) better than James Griffin’s Agency Approach as well as Martha Nussbaum’s Central Capabilities Approach. It also shows how it can be compatible with the increasingly popular Political Conceptions of human rights defended by John Rawls, Charles Beitz, and Joseph Raz. (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)

One aim of this essay is to contribute to understanding aesthetic communication—the process by which agents aim to convey thoughts and transmit knowledge about aesthetic matters to others. Our focus will be on the use of aesthetic adjectives in aesthetic communication. Although theorists working on the semantics of adjectives have developed sophisticated theories about gradable adjectives, they have tended to avoid studying aesthetic adjectives—the class of adjectives that play a central role in expressing aesthetic evaluations. And despite the wealth of (...) attention paid to aesthetic adjectives by philosophical aestheticians, they have paid little attention to contemporary linguistic theories of adjectives. We take our work to be a first step in remedying these lacunae. In this paper, we present four experiments that examine one aspect of how aesthetic adjectives ordinarily function: the context-sensitivity of their application standards. Our results present a prima facie empirical challenge to a common distinction between relative and absolute gradable adjectives because aesthetic adjectives are found to behave differently from both. Our results thus also constitute a prima facie vindication of some philosophical aestheticians’ contention that aesthetic adjectives constitute a particularly interesting segment of natural language, even if the boundaries of this segment might turn out to be different from what they had in mind. (shrink)

This study used a flame atomic absorption spectrometer (FAAS) and atomic fluorescence spec-trophotometer (AFS) to detect the concentrations of chromium (Cr), cadmium (Cd), lead (Pb), hy-drargyrum (Hg) and arsenic (As) in soils and three genotypes of vegetables in greenhouse, as well as analyzed the physical and chemical properties of soils, including soil pH, soil organic matter (OM), basic nutrients, electrical conductivity (EC) and cation exchange capacity (CEC) in Guan- zhong areas, Shaanxi province, China. The results showed that comparing to subsoil, (...) the sampled topsoil is enriched in Cr, Cd, Pb, As and Hg. Cd (0.83 - 3.17 mg·kg-1) and Hg (0.40 - 1.44 mg·kg-1) are exceeding the limited value stated in “the 2006 Greenhouse Vegetable Producing Environmental Quality Evaluation Standards” of 0.40 mg·kg-1 and 0.35 mg·kg-1 respectively. However, Nanzhuang greenhouse soil is within the limits. The heavy metal pollution index (HPI) of soil in Sanyuan (8.10) is the highest and in Dongzhang (4.23) is the lowest. The contents of Pb (0.201 - 0.376 mg·kg-1) were exceeding the limited value (0.20 mg·kg-1) in vegetables species, and Cd (0.0363 - 0.0572 mg·kg-1) in some place were also exceeding the limited value (0.05 mg·kg-1). Greenhouse soils were becoming acidified year after year; the ratios of N, P and K in soil were seriously imbalanced. According to the impacting factors, OM, pH, available P, EC and CEC have obviously effected the accumulation of Cr and Hg. However, there was not enough evidence for the effects of available nitrogen and available potassium. (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)

Imaginative resistance refers to a phenomenon in which people resist engaging in particular prompted imaginative activities. Philosophers have primarily theorized about this phenomenon from the armchair. In this paper, we demonstrate the utility of empirical methods for investigating imaginative resistance. We present two studies that help to establish the psychological reality of imaginative resistance, and to uncover one factor that is significant for explaining this phenomenon but low in psychological salience: genre. Furthermore, our studies have the methodological upshot of showing (...) how empirical tools can complement the predominant armchair approach to philosophical aesthetics. (shrink)

The goal of this short paper is to show that esthetic adjectives—exemplified by “beautiful” and “elegant”—do not pattern stably on a range of linguistic diagnostics that have been used to taxonomize the gradability properties of adjectives. We argue that a plausible explanation for this puzzling data involves distinguishing two properties of gradable adjectives that have been frequently conflated: whether an adjective’s applicability is sensitive to a comparison class, and whether an adjective’s applicability is context-dependent.

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)

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)

Imaginative immersion refers to a phenomenon in which one loses oneself in make-believe. Susanna Schellenberg says that the best explanation of imaginative immersion involves a radical revision to cognitive architecture. Instead of there being an attitude of belief and a distinct attitude of imagination, there should only be one attitude that represents a continuum between belief and imagination. -/- We argue otherwise. Although imaginative immersion is a crucial data point for theorizing about the imagination, positing a continuum between belief and (...) imagination is neither necessary nor sufficient for explaining the phenomenon. In addition, arguing against Schellenberg’s account reveals important but underappreciated lessons for theorizing about the imagination and for interpreting boxological representations of the mind. (shrink)

Imaginative resistance refers to a phenomenon in which people resist engaging in particular prompted imaginative activities. On one influential diagnosis of imaginative resistance, the systematic difficulties are due to these particular propositions’ discordance with real-world norms. This essay argues that this influential diagnosis is too simple. While imagination is indeed by default constrained by real-world norms during narrative engagement, it can be freed with the power of genre conventions and expectations.

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)

Whenever philosophers try to include a “diverse” — in the sense of not currently recognised as canon — philosophy x into their teaching and their research, they inevitably get asked: “What is x philosophy?” and “Is x philosophy really philosophy?”. -/- These metaphilosophical questions do not only arise with attempts to include “diverse” intellectual traditions, but also with attempts to include “diverse” thinkers, works, topics, and methods. First, they are asked to prove that x exists. Second, they are asked to (...) prove that x is really philosophy. To refer to the pattern of debates that these questions engender, call it conversational dynamics of diversity. (shrink)

The purpose of cultural competence education for medical professionals is to ensure respectful care and reduce health disparities. Yet as Berger and Miller (2021) show, the cultural competence framework is dated, confused, and self-defeating. They argue that the framework ignores the primary driver of health disparities—systemic racism—and is apt to exacerbate rather than mitigate bias and ethnocentrism. They propose replacing cultural competence with a framework that attends to two social aspects of structural inequality: health and social policy, and institutional-system activity; (...) and two psychological aspects of structural inequality: the clinical encounter, and the epistemic. -/- We agree with the structural approach. To that end, we think it would be fruitful to include attention to physical contributors to structural inequality, namely the material artifacts used in medicine. Devices, tools, and technologies can materialize biases, perpetuate oppression, and contribute to health disparities. Granted, not everything that interests philosophers can be squeezed into medical education. Nevertheless, there are compelling reasons for including the study of material artifacts in education designed to reduce health disparities. First, devices and tools often carry forward biases from the past, and keep biases hidden from plain sight. Second, by studying these artifacts, future clinicians can begin to see themselves as part of a larger sociotechnical system. Finally, as medicine becomes increasingly tech-laden, it’s important for clinicians to see how material artifacts (including algorithms) connect individuals to structures. This will help to undermine oversimplified narratives according to which objective tools and technologies can correct for the bias and subjectivity of flawed human beings. (shrink)