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)

Even where willingness-to-pay as a measure of welfare impact is adjusted for diminishing marginal utility, welfare economics is shown to favour policies that add to the life expectancy or that enhance the quality of life of persons who are already better-off. I propose an alternative, Equal Respect methodology, under an axiomatic claim that at the point of decision the prospective life years of all individuals are of equal intrinsic social value. This justifies equal valuation of risk mitigation across all (...) persons; similarly, all appraised impacts should be scaled to accord equal respect to difficult but no-less-valuable lives. (shrink)

The incremental risk charge (IRC) is a new regulatory requirement from the Basel Committee in response to the recent financial crisis. Notably few models for IRC have been developed in the literature. This paper proposes a methodology consisting of two Monte Carlo simulations. The first Monte Carlo simulation simulates default, migration, and concentration in an integrated way. Combining with full re-valuation, the loss distribution at the first liquidity horizon for a subportfolio can be generated. The second Monte Carlo simulation (...) is the random draws based on the constant level of risk assumption. It convolutes the copies of the single loss distribution to produce one year loss distribution. The aggregation of different subportfolios with different liquidity horizons is addressed. Moreover, the methodology for equity is also included, even though it is optional in IRC. (shrink)

Supererogatory acts are those that lie “beyond the call of duty.” There are two standard ways to define this idea more precisely. Although the definitions are often seen as equivalent, I argue that they can diverge when options are infinite, or when there are cycles of better options; moreover, each definition is acceptable in only one case. I consider two ways out of this dilemma.

A familiar part of debates about supererogatory actions concerns the role that cost should play. Two camps have emerged: one claiming that extreme cost is a necessary condition for when an action is supererogatory, while the other denies that it should be part of our definition of supererogation. In this paper, I propose an alternative position. I argue that it is comparative cost that is central to the supererogatory and that it is needed to explain a feature that all accounts (...) agree is central to the very notion of supererogation: optionality. Perhaps because of this agreement on its importance, few attempts have been made to clarify and explain the notion of optionality. I argue that giving an account of the optionality of supererogatory requires drawing a line between doing the bare minimum permissible and going beyond the bare minimum and that this line ought to be drawn based on comparative cost of alternative permissible acts. Having outlined my account and motivated it, I discuss and reject two concerns that might be raised: firstly, that it is extreme cost, not comparative cost, that matters and, secondly, that in fact no cost is needed for an act to be supererogatory. (shrink)

The concept of ecosystem services is a way of visualizing the instrumental value that nature has for human beings. Most ecosystem services can be performed by more than one species. This fact is sometimes used as an argument against the preservation of species. However, even though substitutability does detract from the instrumental value of a species, it also adds option value to it. The option value cannot make a substitutable species as instrumentally valuable as a non-substitutable species, but (...) in many cases, it can add enough value to make the species more valuable than the projects that threaten its existence. (shrink)

Many of us think we have agent-centred options to act suboptimally. Some of these involve favouring our own interests. Others involve sacrificing them. In this paper, I explore three different ways to accommodate agent-centred options in a criterion of objective permissibility. I argue against satisficing and rational pluralism, and in favour of a principle built around sensitivity to personal cost.

Brian Hedden has proposed that any successful account of options for the subjective “ought” must satisfy two constraints: first, it must ensure that we are able to carry out each of the options available to us, and second, it should guarantee that the set of options available to us supervenes on our mental states. In this paper I show that, due to the ever-present possibility of Frankfurt-style cases, these two constraints jointly entail that no agent has any options at any (...) time. This consequence, however, is clearly unacceptable, so one of Hedden’s constraints must go. Because the ability constraint is indispensable, I argue, we have no choice but to reject the supervenience constraint. Hedden’s underlying motivation for imposing the supervenience constraint is the conviction that our options should be transparent to us, but transparency also proves to be incompatible with the ability constraint, so it must be rejected as well. I conclude by sketching an unabashedly externalist account of options, which conceives of options as exhaustive combinations of atomic movements. (shrink)

This paper uses a partially ordered set of syntactic categories to accommodate optionality and licensing in natural language syntax. A complex but well-studied data set pertaining to the syntax of quantifier scope and negative polarity licensing in Hungarian is used to illustrate the proposal. The presentation is geared towards both linguists and logicians. The paper highlights that the main ideas can be implemented in different grammar formalisms, and discusses in detail an implementation where the partial ordering on categories is given (...) by the derivability relation of a calculus with residuated and Galois-connected unary operators. (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)

Autonomous e-coaching systems offer their users suggestions for action, thereby affecting the user's decision-making process. More specifically, the suggestions that these systems make influence the options for action that people actually consider. Surprisingly though, options and the corresponding process of option generation --- a decision-making stage preceding intention formation and action selection --- has received very little attention in the various disciplines studying decision making. We argue that this neglect is unjustified and that it is important, particularly for designers (...) of autonomous e-coaching systems, to understand how human option generation works. The aims of this paper are threefold. The first aim is to generate awareness with designers of autonomous e-coaching systems that these systems do in fact influence their users' options. The second is to show that understanding the interplay between a person's options and the e-coaching system's suggestions is important for improving the effectiveness of the system. The third is that the very same interplay is also crucial for designing e-coaching systems that respect people's autonomy. (shrink)

An option range is a set of alternative actions available to an agent at a given time. I ask how a moral theory’s account of option ranges relates to its recommendations about deliberative procedure (DP) and criterion of rightness (CR). I apply this question to Act Consequentialism (AC), which tells us, at any time, to perform the action with the best consequences in our option range then. If anyone can employ this command as a DP, or assess (...) (direct or indirect) compliance with it as a CR, someone must be able to tell which actions fit this description. Since the denseness of possibilia entails that any option range is indefinitely large, no one can do this. So no one can know that any option has ever emerged from any range as the best option in that range. However we come to know that a given option is right, we never come to know it in AC’s way. It is often observed that AC cannot give us a DP. AC cannot give us a CR either, unless we are omniscient. So Act Consequentialism is useless. (shrink)

Contemporary discussions of egalitarian justice have often focused on the issue of expensive taste. G.A. Cohen has recently abandoned the view that all chosen disadvantages are non-compensable, now maintaining that chosen expensive judgmental tastes—those endorsed by valuational judgment—are compensable as it is unreasonable to expect persons not to develop them. But chosen expensive brute taste—the main type of non-compensable expensive taste on the new scheme—cannot be described in such a way that there is a normative difference between it and chosen (...) expensive judgmental taste. As there are related problems with denying compensation for the other kind of expensive taste that might remain non-compensable, Cohen's position on taste appears to be either implausible or virtually indistinguishable from that of equality of welfare. However, compensation for valuational judgment-based expensive taste might be justified on grounds of responsibility. (shrink)

According to traditional forms of act-consequentialism, an action is right if and only if no other action in the given circumstances would have better consequences. It has been argued that this view does not leave us enough freedom to choose between actions which we intuitively think are morally permissible but not required options. In the first half of this article, I will explain why the previous consequentialist responses to this objection are less than satisfactory. I will then attempt to show (...) that agents have more options on consequentialist grounds than the traditional forms of act-consequentialism acknowledged. This is because having a choice between many permissible options can itself have value. (shrink)

John Maier’s Options and Agency is an excellent book. It is brimming with insights and original ideas; in just about 160 pages of text, it provides the reader with an entirely novel perspective on...

Is logic empirical? Is logic to be found in the world? Or is logic rather a convention, a product of conventions, part of the many rules that regulate the language game? Answers fall in either camp. We like the linguistic answer. In this paper, we want to analyze how a linguistic community would tackle the problem of developing a logic and show how the linguistic conventions adopted by the community determine the properties of the local logic. Then show how to (...) move from a notion of logic that varies from community to community to a notion of logic that is in a sense universal. The framework is conventional up to a point: we have sentences, atomic and composite, the connectives are interpreted, values are computed, and the value of a composite sentence is a function of the values of its subsentences. Less conventional is the use of a plurality of truth values, and the sharp distinction we draw between sentences and statements, in the spirit of the distinction between proposition and judgment that one may find in proof theory. The linguistic community will face many choices. What are the good ones, the ones to avoid? Are there, in some sense, optimal choices? These are the kind of issues we are addressing. Where do we end up? With some kind of universal bivalent logic, ironically enough. We start from an arbitrarily large number of truth values, atomic sentences and connectives, construct a generic many-valued logic, recover more or less the usual results and issues, and in the end it all comes down to a positive bivalent logic with two connectives, `and' and `or', as if logic is nothing more than a mere accounting of possibilities. (shrink)

I argue that you can be permitted to discount the interests of your adversaries even though doing so would be impartially suboptimal. This means that, in addition to the kinds of moral options that the literature traditionally recognises, there exist what I call other-sacrificing options. I explore the idea that you cannot discount the interests of your adversaries as much as you can favour the interests of your intimates; if this is correct, then there is an asymmetry between negative partiality (...) toward your adversaries and positive partiality toward your intimates. (shrink)

Human rights treaties are often attached and complemented with Optional Protocols. The Optional protocol instruments are adopted after careful deliberation between different stakeholders including member states to human rights treaties. -/- The present document on Introduction to the International Covenant on Economic Social and Cultural Rights- Optional Protocol [OP-ICESCR] is an addition to the on-going work on the Human Rights Framework on ESC Rights. It covers basic information on the objectives of the OP and the key provisions dealing with the (...) redressal mechanisms and processes. Much emphasis is given to highlighting the expansion of the normative framework through the works of the Committee under the ICESCR. The document highlights a few of the important standards developed, interpreted and applied by the Committee in its dealing with member states. The document also mentions a few areas that need further study and analysis in order to understand the impact of the OP-ICESCR mechanisms within domestic jurisdictions, particularly of the member states. (shrink)

I explain why model theory is unsatisfactory as a semantic theory and has drawbacks as a tool for proofs on logic systems. I then motivate and develop an alternative, the truth-valuational substitutional approach (TVS), and prove with it the soundness and completeness of the first order Predicate Calculus with identity and of Modal Propositional Calculus. Modal logic is developed without recourse to possible worlds. Along the way I answer a variety of difficulties that have been raised against TVS and show (...) that, as applied to several central questions, model-theoretic semantics can be considered TVS in disguise. The conclusion is that the truth-valuational substitutional approach is an adequate tool for many of our logic inquiries, conceptually preferable over model-theoretic semantics. Another conclusion is that formal logic is independent of semantics, apart from its use of the notion of truth, but that even with respect to it its assumptions are minimal. (shrink)

This paper presents an analytical model for valuing interest rate swaps, subject to bilateral counterparty credit risk. The counterparty defaults are 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.

Economists can value things for cost-benefit analysis using either a structured or an unstructured approach. The first imposes some theoretical structure on the valuation; the second does not. This paper explains the difference between the approaches and examines the relative merits of each. Cost-benefit analysis may be aimed at finding what would be the best action, or alternatively at finding which action should be done in a democracy. The paper explains the difference, and argues that the appropriate aim is (...) the first. Given that, it comes down in favour of the structured approach to valuation. As an example, it discusses different approaches to valuing life in economics. (shrink)

This chapter identifies a novel family of metaethical theories that are non-descriptive and that aim to explain the action-guiding qualities of normative thought and language. The general strategy is to consider different relations language might bear to a given content, where we locate descriptivity (or lack of it) in these relations, rather than locating it in a theory that begins with the expression of states of mind, or locating it in a special kind of content that is not way-things-might-be content. (...) One such view is sketched, which posits two different content-fixing cognitive roles for bits of language. One role fixes a descriptive relation to content and another role fixes a non-descriptive relation to content. In addition to non-descriptivity and action guidance, the chapter briefly considers the appearance of mind-independent authoritative force, disagreement, and Frege–Geach concerns. (shrink)

Philosophical investigation in synthetic biology has focused on the knowledge-seeking questions pursued, the kind of engineering techniques used, and on the ethical impact of the products produced. However, little work has been done to investigate the processes by which these epistemological, metaphysical, and ethical forms of inquiry arise in the course of synthetic biology research. An attempt at this work relying on a particular area of synthetic biology will be the aim of this chapter. I focus on the reengineering of (...) metabolic pathways through the manipulation and construction of small DNA-based devices and systems synthetic biology. Rather than focusing on the engineered products or ethical principles that result, I will investigate the processes by which these arise. As such, the attention will be directed to the activities of practitioners, their manipulation of tools, and the use they make of techniques to construct new metabolic devices. Using a science-in-practice approach, I investigate problems at the intersection of science, philosophy of science, and sociology of science. I consider how practitioners within this area of synthetic biology reconfigure biological understanding and ethical categories through active modelling and manipulation of known functional parts, biological pathways for use in the design of microbial machines to solve problems in medicine, technology, and the environment. We might describe this kind of problem-solving as relying on what Helen Longino referred to as “social cognition” or the type of scientific work done within what Hasok Chang calls “systems of practice”. My aim in this chapter will be to investigate the relationship that holds between systems of practice within metabolic engineering research and social cognition. I will attempt to show how knowledge and normative valuation are generated from this particular network of practitioners. In doing so, I suggest that the social nature of scientific inquiry is ineliminable to both knowledge acquisition and ethical evaluations. (shrink)

The (moral) permissibility of an act is determined by the relative weights of reasons, or so I assume. But how many weights does a reason have? Weight Monism is the idea that reasons have a single weight value. There is just the weight of reasons. The simplest versions hold that the weight of each reason is either weightier than, less weighty than, or equal to every other reason. We’ll see that this simple view leads to paradox in at least two (...) ways. We must complicate the picture somehow. I consider two candidate complications. The first, Parity Monism, is inspired by Ruth Chang’s suggestion that parity is a fourth comparative beyond the traditional three (>, <, =). This view complicates the single weight relation by allowing that the weights of reasons can be on a par. Unfortunately, Parity Monism resolves only one of the two paradoxes that afflict simple versions of Weight Monism. To resolve both paradoxes, we need our second candidate complication, Weight Pluralism. This view holds that reasons have at least two weight values (e.g., justifying weight and requiring weight) and these two values aren’t always equivalent. Parity is no substitute for Pluralism. (shrink)

In this paper I explore some ideas inspired by Federico Picinali’s Justice In-Between: A Study of Intermediate Criminal Verdicts. Picinali makes a case for the introduction of intermediate options in criminal trials – verdicts with consequences that are harsher than an acquittal, but not so harsh as a conviction. From a certain perspective, the absence of intermediate options in criminal trials is puzzling – out of kilter with much of our everyday decision-making and, perhaps, with the recommendations of expected utility (...) theory. I will argue, however, that the lack of intermediate options is much less puzzling when put in the context of our ordinary practices of blame and non-legal punishment. (shrink)

Research Article: Leasing Options Author: Vuong Quan Hoang Outlet: Vietnam Economic Times (pg. 28) Published on: 15 October 1997.

We sometimes violate social norms in order to express our views and to trigger public debates. Many extant accounts of social norms don’t give us any insight into this phenomenon. Drawing on Cristina Bicchieri’s work, I am putting forward an empirical hypothesis that helps us to understand such norm violations. The hypothesis says, roughly, that we often adhere to norms because we are systematically blind to norm-violating options. I argue that this hypothesis is independently plausible and has interesting consequences. It (...) implies, e.g., that some experimental paradigms for investigating social norms have hitherto unnoticed shortcomings. (shrink)

The new Christian humanism is not about concepts and theories. It is a mystical experience of the centrality of Jesus Christ, of His face of mercy, of love given and delivered. Love is the gift that we must accept and respond to with love, especially with an ethic of love that makes us stand in solidarity with nature, with each other, and with the poor in a special way. We are a gift that is communicated. We must use the resources (...) of science, technology, and educational advances without fear, but always looking at human beings as the goal of our action. Everything is summarized in an integral ethic of loving care, in which women are experts and especially women religious in the church . (shrink)

Many philosophers have thought that aggregates of small, broadly dispersed evils don’t pose the same sort of challenge to theism that horrendous evils like the Nazi Holocaust do. But there are interesting arguments that purport to show that large enough aggregates of small evils are morally and axiologically equivalent to horrendous evils. Herein lies an intriguing and overlooked strategy for defending theism. In short: small evils, or aggregates of such evils, don’t provide decisive evidence against theism; there’s no relevant difference (...) between horrendous evils and aggregates of small evils; hence horrendous evils must not provide decisive evidence against theism, either. (shrink)

Open theists argue that God's relationship to time, as conceived in classical theism, is erroneous. They explain that it is contradictory for an atemporal being to act in a temporal universe, including experiencing its temporal successions. Contrary to the atemporalists, redemptive history has shown that God interacts with humans in time. This relational nature of God nullifies the classical notion of God as timelessly eternal. Therefore, it lacks a philosophical and theological basis. Because God is in time, He does not (...) know all future contingencies and, therefore, changes. This study examines open theism's appropriation of the A and B theories of time to the divine-human relationship. The study argues that divine temporality does not solve the tension of divine-human relationships, especially in relation to the future. Further, historical divine temporality does not negate the fact of divine atemporality. It mainly stems from God's choice to create temporal creatures and His relationship with them. Furthermore, if it is not logically and metaphysically contradictory for an omnipresent being to act in space, then it follows that an atemporal being can act in time. Whether time is understood from the metric or psychological point of view, it does not transcend God, and therefore, the limitation it places on human creatures with respect to the future does not apply to God. Lastly, although a few philosophers reject the notion of eternity as timelessly eternal, the doctrine has a philosophical and theological basis in the Scripture. (shrink)

Among worldviews, in addition to the options of materialist atheism, pantheism and personal theism, there exists a fourth, “local emergentism”. It holds that there are no gods, nor does the universe overall have divine aspects or any purpose. But locally, in our region of space and time, the properties of matter have given rise to entities which are completely different from matter in kind and to a degree god-like: consciousnesses with rational powers and intrinsic worth. The emergentist option is (...) compared with the standard alternatives and the arguments for and against it are laid out. It is argued that, among options in the philosophy of religion, it involves the minimal reworking of the manifest image of common sense. Hence it deserves a place at the table in arguments as to the overall nature of the universe. (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 essay, we explore an issue of moral uncertainty: what we are permitted to do when we are unsure about which moral principles are correct. We develop a novel approach to this issue that incorporates important insights from previous work on moral uncertainty, while avoiding some of the difficulties that beset existing alternative approaches. Our approach is based on evaluating and choosing between option sets rather than particular conduct options. We show how our approach is particularly well-suited to (...) address this issue of moral uncertainty with respect to agents that have credence in moral theories that are not fully consequentialist. (shrink)

I argue that the main theme of the Zhuangzi is that of spiritual transformation. If there is no such theme in the Zhuangzi, it becomes an obscure text with relativistic viewpoints contradicting statements and stories designed to lead the reader to a state of spiritual transformation. I propose to reveal the coherence of the deep structure of the text by clearly dividing relativistic statements designed to break down fixed viewpoints from statements, anecdotes, paradoxes and metaphors designed to lead the reader (...) to a state of spiritual transformation. Without such an analysis, its profound stories such as the butterfly dream and the Great Sage dream will blatantly contradict each other and leave us bereft of the wisdom they presage. Unlike the great works of poetic and philosophic wisdom such as the Dao de Jing and the Symposium, the Zhuangzi will be reduced to a virtually unintelligible, lengthy, disjointed literary ditty, a potpourri of paradoxical puzzles, puns and parables, obscure philosophical conundrums, monstrous interlocutors and historical personages used as mouthpieces authoritatively arguing on behalf of viewpoints humorously opposite to what they historically held. (shrink)

On one standard philosophical position adopted by evolutionary naturalists, human ethical systems are nothing more than evolutionary adaptations that facilitate social behavior. Belief in an absolute moral foundation is therefore in error. But evolutionary naturalism, by its commitment to the basic valutional concept of fitness, reveals another, logical error: standard conceptions of value in terms of simple predication and properties are mistaken. Valuation has instead, a relational structure that makes reference to respects, subjects and environments. This relational nature is (...) illustrated by the analogy commonly drawn between value and color. Color perception, as recognized by the ecological concept, is relational and dependent on subject and environment. In a similar way, value is relational and dependent on subject and environment. This makes value subjective, but also objective in that it is grounded on facts about mattering. At bottom, values are complex relational facts. The view presented here, unlike other prominent relational and naturalistic conceptions of value, recognizes the full range of valuation in nature. The advantages of this relational conception are first, that it gets valuation right; second, it provides a framework to better explain and understand valuation in all its varieties and patterns. (shrink)

If we were required to sacrifice our own interests whenever doing so was best overall, or prohibited from doing so unless it was optimal, then we would be mere sites for the realisation of value. Our interests, not ourselves, would wholly determine what we ought to do. We are not mere sites for the realisation of value — instead we, ourselves, matter unconditionally. So we have options to act suboptimally. These options have limits, grounded in the very same considerations. Though (...) not merely such sites, you and I are also sites for the realisation of value, and our interests (and ourselves) must therefore sometimes determine what others ought to do, in particular requiring them to bear reasonable costs for our sake. Likewise, just as my moral status grounds a requirement that others show me appropriate respect, so must I do to myself. (shrink)

The standard form of act-consequentialism requires us to perform the action with the best consequences; it allows choice between moral options only on those rare occasions when several actions produce equally good results. This paper argues for moral options and thus against act-consequentialism. The argument turns on the insight that some valuable things cannot exist unless our moral system allows options. One such thing is the opportunity for individuals to enact plans for their life from among alternatives. Because planning one’s (...) life has value, and because it requires moral options, a world governed by a moral system that admits of options is better than one governed by act-consequentialism. The paper argues that these facts entail that morality admits of a significant number of moral options; act-consequentialism is false. (shrink)

This article critically examines the several definitions of, or elements of a single definition of, Robert S. Hartman's understanding of “intrinsic values,” “intrinsic evaluations,” “extrinsic values,” and “extrinsic valuations”. [I have since changed my mind about what is said in the last few sentences. I now think, with Hartman, that only unique, non-repeatable, conscious individuals have intrinsic worth. Repeatable qualities like pleasure and knowledge are “good for us” properties, but not “good in, to, and for themselves” or “for their own (...) sakes” properties.]. (shrink)

Particular persons have claims against being made worse off than they could have been. The literature, however, has focused primarily on only two-option cases; yet, these cases fail to capture all of the morally relevant factors, especially when a person’s existence is in question. This paper explores how to assess claims in multiple-option choice sets. We scrutinize the only extant proposal, offered by Michael Otsuka, which we call the Weakening View. In light of its problems, we develop an (...) alternative: the Combining View. The Weakening View holds that a person’s claim against a loss of well-being relative to one distribution is weakened by the availability of further alternatives relative to which the person gains well-being. By contrast, our view holds that a person has an overall claim for or against a certain distribution relative to the whole option set, where overall claims are second-order functions of the different pairwise claims. Finally, we defend the Combining View by exploring its implications for the impact of a person’s possible non-existence on their overall claims, and we develop a proposal for how the number of distributions relative to which a person gains or loses welfare influences the strength of their overall claims. (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)

According to Burri, a major reason why suicide is often irrational lies in the option value of life. Remaining alive is valuable because this allows for a larger menu of options, and the possibility of committing suicide in the future adds further value to the act of remaining alive now. In this note, I represent life as a trust game played by two selves – the young self and the old self – and I argue that the possibility to (...) commit suicide in the future can encourage committing suicide now, against what the theory of the option value of life predicts. (shrink)

The Authority Account provides a new explanation why commonsense morality contains prudential options—options that permit agents to perform actions that promote their own wellbeing more than the action they have most reason to do, from the moral point of view. At the core of that explanation are two claims. The first is that moral requirements are traditionally widely taken to have an authoritative status; that is, to be rules that morality imposes by right. The second is that in order for (...) moral requirements to have such a status, morality must contain prudential options. If both of these claims are true, then they will create a pressure to think of morality as containing prudential options. And according to the Authority Account, the fact that commonsense morality contains such options is the result of this pressure. (shrink)

Moral latitude is only ever a matter of coincidence on the most popular decision procedure in the literature on moral uncertainty. In all possible choice situations other than those in which two or more options happen to be tied for maximal expected choiceworthiness, Maximize Expected Choiceworthiness implies that only one possible option is uniquely appropriate. A better theory of appropriateness would be more sensitive to the decision maker’s credence in theories that endorse agent-centred prerogatives. In this paper, we will (...) develop and defend a modified version of this view that allows for agent-centred prerogatives and supererogation as part of its verdicts about appropriateness. (shrink)

From the beginning of the 16th century to the end of the 18th century, there were not less than ten philosophers who focused extensively on Venn’s ostensible analytical diagrams, as noted by modern historians of logic (Venn, Gardner, Baron, Coumet et al.). But what was the reason for early modern philosophers to use logic or analytical diagrams? Among modern historians of logic one can find two theses which are closely connected to each other: M. Gardner states that since the Middle (...) Ages certain logic diagrams were used just in order to teach “dull-witted students”. Therefore, logic diagrams were just a means to an end. According to P. Bernhard, the appreciation of logic diagrams had not started prior to the 1960s, therefore the fact that logic diagrams become an end the point of research arose very late. The paper will focus on the question whether logic resp. analytical diagrams were just means in the history of (early) modern logic or not. In contrast to Gardner, I will argue that logic diagrams were not only used as a tool for “dull-witted students”, but rather as a tool used by didactic reformers in early modern logic. In predating Bernhard’s thesis, I will argue that in the 1820s logic diagrams had already become a value in themselves in Arthur Schopenhauer’s lectures on logic, especially in proof theory. (shrink)

Corporative global media cannot be an instrument of the culture of peace, because they have made widespread individualistic values of the consummative society. Through their symbolic power, they successfully dominate over every sphere of existence of a society: politics, economic life, social ties, national culture, human communication and private life. Traditional media could not be a factor in the promotion and development of culture of peace, simply because they are proponents of corporative economic and political interests. It is in the (...) interest of citizens to counter the activities of “rapacious capitalism” (SCHMIDT 1998), of local comprador political and economic elites, and the practice of robbery of their work; to bridle the proliferation of weapons and acts of aggression. (shrink)

The claim that the observation of a violation of a Bell inequality leads to an alleged alternative between nonlocality and non-realism is annoying because of the vagueness of the second term.