Credit Risk, Capital Structure and the Pricing of Equity Options

Book Description

This book is on option pricing in firm-value-based ("structural”) credit risk models. Using modern techniques (change of numeraire) instead of directly solving partial differential equations (the main approach in the literature), closed-form pricing formulae for options on equity can be derived for a range of well-known models from this class. A common feature of these models is the assumption of an exogenously given firm value process, which leads to an endogenous equity (stock) price process. The stock price process depends directly on the firm’s capital structure. This allows us not only to study credit risk effects in option prices, but also to investigate option price changes resulting from changes in a firm’s capital structure. Numerical results illustrate the implications of our models. Numerous figures and tables allow for an easy comparison of various structural credit risk models.

Customer Reviews:

Self-contained, concise, to the point.......2003-09-03

For a graduate student in finance with an interest in derivatives, this is an excellent introduction to
* structural credit risk models (starting from Merton 1974, guiding the reader to very recent models)
* change of numeraire techniques
* the extension of structural credit models for option valuation.

Although - at first sight - it seems to be very technical, this is definitely the most accessible book in this area I have ever seen!

Book Description

Foreword by Stephen Covey

Draws on firsthand experience at implementing and developing hundreds off-diredirected work teams and horizontal initiatives within such corporate revolutionaries as GE, The Walt Disney Company, ITT, and Litton Industries. Offers a strategic and unique guide for those involved in the frontline action of this revolution. Takes a candid and realistic look at the ongoing challenges and ultimate benefits of reengineering organizations through teams.

The Horizontal Revolution documents the radical shift in workplace roles, goals, and souls and presents a step-by-step approach to creating horizontal operations through high-involvement teaming and coaching. It guides readers through the four stages of change: pioneering through reactive and proactive processes, settling-in by rewriting the work contract, tilting the organizational structure toward interdependence, and transforming and exploring new tools for continuous improvement. Filled with hands-on prescriptions, insights, and proven techniques for redistributing ownership and responsibility, and minimizing us versus them conditions, the book delivers a practical approach to making the workplace the center of learning and leadership.

Customer Reviews:

A vault of information.......2001-12-11

Unbelievable amount of information from the early beginnings of Roadless to it's last product. I'm still in shock at the extent of research Gibbard put into this and I can't imagine how he got his hands on so many photographs.

Amazon.com

In Unto Others, philosopher Elliott Sober and biologist David Sloan Wilson bravely attempt to reconcile altruism, both evolutionary and psychological, with the scientific discoveries that seem to portray nature as red in tooth and claw. The first half of the book deals with the evolutionary objection to altruism. For altruistic behavior to be produced by natural selection, it must be possible for natural selection to act on groups--but conventional wisdom holds that group selection was conclusively debunked by George Williams in Adaptation and Natural Selection. Sober and Wilson nevertheless defend group selection, instructively reviewing the arguments against it and citing important work that relies on it. They then discuss group selection in human evolution, testing their conclusions against the anthropological literature.

In the second half of the book, the question is whether any desires are truly altruistic. Sober and Wilson painstakingly examine psychological evidence and philosophical arguments for the existence of altruism, ultimately concluding that neither psychology nor philosophy is likely to decide the question. Fortunately, evolutionary biology comes to the rescue. Sober and Wilson speculate that creatures with truly altruistic desires are reproductively fitter than creatures without--altruists, in short, make better parents than do egoists.

Rich in information and insight, Unto Others is a book that will be seriously considered by biologists, philosophers, anthropologists, and psychologists alike. The interested amateur may find it difficult in places but worth the effort overall. --Glenn Branch

Book Description

No matter what we do, however kind or generous our deeds may seem, a hidden motive of selfishness lurks--or so science has claimed for years. This book, whose publication promises to be a major scientific event, tells us differently. In Unto Others philosopher Elliott Sober and biologist David Sloan Wilson demonstrate once and for all that unselfish behavior is in fact an important feature of both biological and human nature. Their book provides a panoramic view of altruism throughout the animal kingdom--from self-sacrificing parasites to insects that subsume themselves in the superorganism of a colony to the human capacity for selflessness--even as it explains the evolutionary sense of such behavior.

Explaining how altruistic behavior can evolve by natural selection, this book finally gives credence to the idea of group selection that was originally proposed by Darwin but denounced as heretical in the 1960s. With their account of this controversy, Sober and Wilson offer a detailed case study of scientific change as well as an indisputable argument for group selection as a legitimate theory in evolutionary biology.

Unto Others also takes a novel evolutionary approach in explaining the ultimate psychological motives behind unselfish human behavior. Developing a theory of the proximate mechanisms that most likely evolved to motivate adaptive helping behavior, Sober and Wilson show how people and perhaps other species evolved the capacity to care for others as a goal in itself.

A truly interdisciplinary work that blends biology, philosophy, psychology, and anthropology, this book will permanently change not just our view of selfless behavior but also our understanding of many issues in evolutionary biology and the social sciences.

Customer Reviews:

Like wading through mud.......2006-11-10

Sober and Wilson attempt to reduce the perception of evolution as necessarily leading to individualism and selfishness by resurrecting group selection as the means by which altruism has also evolved. Unfortunately they have produced a book which not only fails but is a laborious read.

The authors clearly accept kin-selection and the gene's-eye view yet fail to show how these methods already explain altruism and cooperation. Their attempts to show that there is altruism beyond this only leads to misrepresentations and a contrived argument.

Their definition of a group is 'a set of individuals that influence each other's fitness with respect to a certain trait' and groups are therefore 'defined on a trait by trait basis'. This sounds to me as if it is actually more along the lines of Dawkins' extended phenotype which is fine but is not how people understand groups and group selection.

The main problem with group selection is the lack of stable entities that can be called groups in the first place. The authors try to leave out sexual reproduction to make it easier but this is unacceptable. One or both sexes move between groups to breed so groups are always fluctuating entities - and within a species there can be separated groups of males only or even solitary males. In humans females moved between groups either willingly or by force. Though cooperation within groups is important it is a major omission to overlook the importance of actual numbers of fertile females and female fertility in the successful expansion of groups and how this leads to male-male competition within groups and between male kin groups.

The authors do raise the relevance of empathy but other writers make a much better case of how the biological mother-infant bond has expanded to some degree to the human male and beyond parental feelings to group feelings (eg Jonathan Haidt in 'The Happiness Hypothesis').

Sober and Wilson have contrived evidence for 'pure' altruism, contrived a definition of 'group' and contrived models of 'group-selection' that are frankly impossible to relate to reality. Though well intended they have unfortunately merely produced a book that to read is like wading through mud and does nothing but confuse the debate. A very disappointing book.

Extremely Interesting Ideas (well, in the first half of the book anyway.).......2006-02-25

I avoided reading this book for years because I thought it would advocate some kind of fuzzy minded group selectionism. Well, they advocate group selectionism all right, but in anything but a fuzzy minded way. They explain clearly the exact conditions under which group selection can occur and provide several examples in nature where it has undoubtably occurred. Then they go on to discuss group selectionism as it applies to human beings and the evolution by group selectionism of moral or altruistic feelings in human beings. This section of the book was EXTREMELY interesting, and brought up alot of points I had never considered before.

I wouldn't recommend this as your first book on human evolution, but if you have already read 'The Selfish Gene' and 'The Blind Watchman' by Dawkins, and 'Passions Within Reason' by Frank, and 'The Blank Slate' by Pinker, and are still excited to learn more, this book is definitely the next step. This book doesn't have the sparkling prose style of the other authors in this list, unfortunately, but it is still worth it. At least the first half of the book is.

The second half of the book was, unfortunately, a complete waste of time. It is on a completely different subject matter, the underlying psycological mechanism by which peoples feelings of altruism are produced, and they spend endless time trying to prove that people's feelings of altruism arise by one underlying psychological mechanism than by another. They are completely unsuccessful in their attempts to do so, and unfortunately it was a pretty boring journey along the way. Make that a really boring journay along the way. I struggled through the whole second half of the book because I thought that they would get over their obsession and start discussing something interesting again. But alas they never do.

I wish they had spent more time fleshing out the subject matter of the first half of the book, group selectionism, giving more examples of it in action, and discussing its implications, etc, instead of trying to tackle another subject. Either that or that they had tried to tackle a subject that was more interesting.

Nevertheless, I would still highly recommend this book. It has alot of insights in it, and it is definitely worth your time.

good science swamped by storytelling.......2005-04-28

I am speaking from the point of view of graduate student studying evolutionary biology.

The first section of this book is one of the clearest written accounts of group selection theory. Group level selection happens when traits are selected BECAUSE they are helpful to that group (usually a group of organisms, but some point out that individuals themselves are groups of cells). Sometimes this level of selection can be antagonistic to traits selected for at the individual level. It is well known that genetic inheritance passes through individuals. Hence the reason why existence of altruism, where an individual sacrifices its fitness for the good of group, is such a controversial topic. Of specific importance to this topic is Wilson and Sober's presentation of the Price equation, which outlines the neccessary states for group level selection to occur. Essentially, variation BETWEEN groups must be greater than variation WITHIN groups. This equation is elegant and fundamentaly irrefutable. Another important topic that Wilson and Sober present in this section is the averaging fallacy, averaging out fitness without regard to group structure. People have used this type of averaging to say that because indivduals do better when they help their group that selection is really happening at the individual level. The use of this average DOES say that those individuals are more fit but it DOES NOT say anying about levels of selection, because the averaging method ignores group structure from the outset and thus excludes the possibility that group selection could explain the results!

As the above comments reflect, Wilson and Sober have gathered together a very comprehensive set of solid theory on levels of selection. Where the book goes wrong is when Wilson and Sober start telling stories (after having promised not to do exactly that). The last two chapters of the first section deal with cultural inheritance, and such things the low cost of punishment within a group. The book degenerates severely from there in terms of scientific quality, and relies on anecdotal evidence (stories). Some of this is fun to think about, but it should be taken with many grains of salt.

Overall, Wilson and Sober have presented and communicated a set contemporary work that shows very clearly that group level selection can and probably does occur. Unfortunately, they have muddied this important contribution by trying to overreach their thesis by creating too tenuous a link between altruism based on genetic inheritence and human culture, and then using human culture as a metaphor for the evolution of altuism in other organisms. Read this book for the real and important contributions, but read it critically and do not swallow every argument whole. As John Maynard Smith said of the book, "to do so would be disaterous."

Altruism Has Biological Underpinnings.......2005-04-14

Is there empirical, biological, and evolutionary justification that mankind acts with unselfish behavior? The authors approach the subject of human altruism and the biological advantages of multilevel (group) selection vis-a-vis human egoism, hedonism, anti-functionalism, and individual functionalism from an interdisciplinary, but primarily evolutionary, approach.

The first half of the book deals with biology, genetics, and anthropology that provide the empirical grounds and logical inferences for believing that multi-level functionalism (groups and stratification) as opposed to individual-only and anti-functionalism evolved through natural selection by rewarding the fittest group selection, social norms, group adaptation, and cultural evolution, just as it rewards the fittest individual. Ergo, just as natural selection favors the fittest individuals, so it favors those individuals who cooperate in the traits of the fittest groups that survive over many generations.

The second section of the book takes the multi-level functionalism and altruism of the first half and evaluates arguments for and against it from psychological, motivational, and philosophical perspectives. While largely armchair speculation (due to lack of empirical studies confined to products of evolution rather than the actual process of evolution), the authors conclude again that natural selection again favors the fittest group, multi-level functionalism, and altruism over egoism, hedonism, selfishness, and individual selection only.

The authors' evidence and arguments are elegant, persuasive, and rigorous, but as the authors admit, much of the arguments are speculative, as no large scale studies have been done to prove or disprove their theses, because the whole subject had been largely abandoned for decades. Still, the cogent and coherent arguments make a convincing case for the rehabilitation of group-altruistic natural selection that is every bit as effectual as individual-selfish natural selection, just as Darwin presciently observed in the "Descent of Man." The conclusion is that mankind is naturally disposed by evolution to work altruistically in groups and that certain groups adapt to their environment better than others increases the significance of natural selection of the group as well as the individual. What the authors prove is that we can no longer ignore group dynamics in the evolutionary process. Altruism benefits both the individual and the group in natural selection. Highly recommended.

The Groupies' world.......2004-07-05

Some American scientists will stretch to amazing extremes in their efforts to overcome Darwin. Gould, one of the worst in this regard, set a tone of erosion of natural selection with "punk eek" or "evolution by jerks." Sober and Wilson, less original than Gould, have attempted to resurrect a long-outdated thesis with this work. As they candidly admit in their Introduction, "group selection" as an evolutionary mechanism, was declared moribund over thirty years ago. However, the remainder of the book is an attempt to revive the corpse. In their view, "altruism", although poorly defined by the authors, shifts natural selection from Darwin's original premise, to group interaction leading to optimal survival. It's a feeble effort, self-refuted on nearly every page.

Sober and Wilson offer two major themes: "Evolutionary Altruism" and "Psychological Altruism". The first part nods to the critics of group selection with some deftly selected quotes made to appear as if surrendering to the notion after all. This is a creationist ploy unexpected in a book purporting to be a serious scientific presentation. The authors attempt to temper the old view of group selection with what they term "multilevel selection theory" which they claim offers "new insights". These insights remain vague or missing altogether. Relying on human-based premises makes it immediately suspect. Using our societal standards to explain the behaviour of insects is not insight - it's misapplication of biology.

The second part, by its very title, shifts the focus to humans alone. Psychology of the remainder of the animal kingdom has so far eluded study. The authors focus on the contrast between "hedonism" and "altruism." These would appear self-explanatory, but in the hands of the authors, you are left in great doubt about their intent. Biologically, they concede these are not absolutes. Hence, we are given thoughts on "desires", "thoughts" and "beliefs" which fail to assemble into anything coherent.

Altruism bothered Darwin. In a world of individual "fitness" within an environment, survival and reproduction seemed the sole driving forces. Although "survival" has taken on a wider definition than in Darwin's day, Sober and Wilson seem to have missed the news. They even go so far as to categorise Darwin as "the first group selectionist"! Although the authors confront the reader with ponderous chapter titles ["Motives As Proximate Mechanisms"], appearing to have deep insights, a moment's reflection would have demonstrated to the authors that their thesis is untenable. No matter how much it bothered Darwin himself, altruism isn't fundamental to evolution's process. Their repeated example, the brain worm, is a prime example instead of kin selection which gives the appearance of altruism [the brain worm sibling group sacrifices one of their number that the remainder can propagate. They are 75% genetically the same].

What is most disturbing about this book is using our species to assess all life. If altruism is an evolutionary issue, why do the authors frame their concept on the human condition? They reveal their secret toward the end of the book in discussing "morality". Sober and Wilson struggle to place "morality" as an issue standing apart from natural selection, yet disclose it lies at the foundation of their presentation. There are many good questions offered for thought in this book, but no valid conclusions to adhere to. [stephen a. haines - Ottawa, Canada]

Book Description

This book is separated into topic sections, making step-by-step instructions as quick and easy as possible.

Customer Reviews:

The pros & cons - even the ones I didn't want to think about.......1999-07-20

This book was great! I can't wait to buy my horse - BUT - this book gave me enough information to know that I'm being a bit pre-mature about it. I'll wait, and when I'm a more comfortable being back in the saddle again - I'll be better prepared to buy the horse that's right for me.

Customer Reviews:

Spanish Best.......2007-08-01

If you like learning about "best guns" this book is a must! It is the authority on the finest shotguns made in Spain. Very informative and lots of pictures. A+++++ reading for the informed shotgunner!

Best Source for Eibar Shotguns.......2007-07-20

This single volume contains a wealth of information about the history, development and current status of all the famed gunmakers of Eibar and the surrounding region. First hand interviews with key personnel in each company add in house credibility to his analysis. I:t ius a must have for the serious collector.

A worthwhile purchase........2007-06-22

"Spanish Best" - The Fine Shotguns of Spain. Second edition.

Despite some minor faults, this is a very worthwhile book, both an enjoyable read and an informative source of reference. It details the recent history of Spanish gunmaking in its capital - Eibar, and its surrounding area. It also contains a tourist guide for a first-time visitor there. Illustrated with a large number of colour plates, most beautiful and many showing the quality of the fine gunsmithing available in Spain. It is competently written by a writer who has a deep knowledge of the Spanish gun trade and who clearly loves his topic. All the key aspects of current Spanish shotgun manufacture are detailed, in addition to history, materials and general information. The editing leaves a little to be desired and the title choice is unfortunate, as the writer covers far more than "Spanish Best" shotguns, including among other topics a brief chapter on Spanish express rifles.

The book appears aimed primarily at the American aficionado and, while it takes for granted that the nuances of a Kersten fastener or the Bessemer process are understood, it assumes that the reader has no knowledge of Spain or the Basque region, no Spanish language skills and no knowledge of Spanish history or culture. It gives a potted history of Spain's Basque Region, its food, politics and the Spanish Civil War, which, while succinct and as accurate as broad brush-strokes can be, intrudes somewhat on the flow of the book and contributes little to the narrative. Indeed, any future edition would be better off with this information moved to an appendix. Any intending traveller would be better off buying appropriate travel guides for the region (e.g. Michelin Green Guide), though it is best not to expect too much by way of information on Eibar, a minor town with nothing to interest the casual tourist.

All the main manufacturers are covered, in a very egalitarian fashion, with about 15 pages devoted to each, be they Arrizabalaga, Arrieta, Grulla or AyA. An owner, like this reviewer, of an Arrizabalaga, judged by many to be the "Spanish Best," will not be disappointed but may wonder why they do not warrant more space. Kemen merits only five pages, but then its products and history are more recent. For some readers the book will lack definitive opinion such as why some artisans follow specific designs, or why a Purdey or Holland patent is preferred to a Boss (or the contrary.) Throughout, the book is sprinkled with many interesting details, contrasting, for example, the English and Spanish approach to machinery, the manufacturing process and its timespan.

Generally, books on guns can be divided into those for the educated shooter and those for the gun freak. Educated shooters have the "eye" to recognise beauty and are sufficiently technically proficient to understand and appreciate quality workmanship. The gun freak is an obsessive type, prepared to argue forcefully and at length about such matters as the correct number of pins for a sidelock, the procedure for an oil-rubbed stock finish, or discourse on the best type of bone to provide case-colours. Although this book falls into the category for the former, both will find sufficient to interest them. However, there are no secret recipes or processes divulged, nor are the technicana of engraving nor stock checkering discussed in any significant detail.

The forty or so pages of appendices include a bibliography and a useful dictionary of the various gun parts with diagrams, both English/Spanish and Spanish/English, all of which will facilitate and educate the speaker of basic Spanish. Serial numbers, dates of manufacture and proof marks are also covered. Also, there are essays on buying a gun and gun fit.

Despite its few shortcomings, this book is an informative and enjoyable read and in my view definitely merits a place in the library of any keen shot. It certainly would make a very welcome present for the owner of any Spanish gun, particularly a Spanish Best.

Spanish Best.......2005-07-24

The author obviously is an affiçionado of Spain, the Basque region in particular, the inhabitants and the guns they make: who can blame him? Terry Wieland surely knows what he's writting about due to his many trips to the region. The history of the Basque country and the gunmakers there only give more credit to the book and the author. There is more than enough information on the different gunmakers, their history and their products to satisfy even the most stringent criticists. I would be honoured to visit the Basque gunmakers with him by my side.

It's the experience . . . fine guns and the Basque people!.......2005-05-06

One can little criticize the author for including information about Spanish history, the Basque people, and the Eibar region. Many among us are drawn to fine guns out of appreciation for things inherently beautiful and also from a sense of subtle but ever-present wanderlust--thoughts of carrying a Spanish best afield in some special corner of the earth where the only sounds to be heard are the chime of bellota barrels and the whistling of wings. And it is savoring the moment and relishing in the tradition that makes it all worthwhile. Yet tradition embraces not just the details of the tool but also the history of its creator.Spanish Best captures the essence of it all with handsome, gloss, color pictures and sufficient detail to do the Spanish doublegun justice. Perhaps in future editions, the author will include more great images of the guns and the region, but hopefully not at the price of omitting historical details that make one's quest for a fine side-by-side so memorable.

Book Description

Over 1,000 signs, clearly described and illustrated, in an affordable, take-anywhere pocket dictionary.

Part of the popular pocket dictionary series from Random House, Random House Pocket American Sign Language Dictionary offers full-torso illustrations and clear descriptions of each sign set, setting it apart from the competition.
Just right for students, interpreters, and anyone involved in the deaf community.
Includes full-torso illustrations and clear descriptions of over 1,000 signs.

Customer Reviews:

I love this book!.......2007-02-18

The size of this book won me over. It is very easy to take along for travel in the car, briefcase, or bigger purse. The illustrations are very clear, and the selection of sign definitions is extensive.

Wonderful Reference Book.......2006-11-10

The book is everything I needed. It is easy to use and easy to carry. The illustrations are good.

Great Resource for learning ASL for yourself or your babies.......2006-06-25

I have this book, my only hesitation and reason for the 4 star rating is that it looks different from the one that I have, I like the way mine looks much better and if it looked like this purple one I probably wouldn't have bought it.

Mine is gold and has a black stripe that goes horizontally across the whole cover.

I like this book because it is very small and concise which I need because I am using it for baby sign language and I need to reference it a lot to learn/remember signs that we are using, one thing that bothered me a little bit was the lack of words needed to communicate 'bathroom activities' with baby, like number one and number two for instance. I was able to find those online though.

Good pocket dictionary!!.......2002-04-13

I recomend this pocket dictionary for fast access to the signs to express more than 1000 common concepts. Practical for have always near when learning the most frequent used words in ASL.

Random House Webster's Pocket American Sign Language Dictionary

Average customer rating:

Random House Webster's Pocket American Sign Language Dictionary
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ProductGroup: Book
Binding: Paperback

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ASIN: 0375722785
Release Date: 2008-06-10

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Binding: Paperback

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