Research ArticleOpen AccessGoogle Scholar indexed
Pricing Pseudo Contingencies on Motion Picture Assets under No Free Lunch with Vanishing Risk
Department of Mathematics, University of Eswatini, Kwaluseni Campus, Kwaluseni, Eswatini
Department of Mathematics, University of Eswatini, Kwaluseni Campus, Kwaluseni, Eswatini
Department of Mathematics, University of Eswatini, Kwaluseni Campus, Kwaluseni, Eswatini
Department of Mathematics and Computer Science, UMYU, Katsina, Nigeria
- 1 Department of Mathematics, University of Eswatini, Kwaluseni Campus, Kwaluseni, Eswatini
- 2 Department of Mathematics, University of Eswatini, Kwaluseni Campus, Kwaluseni, Eswatini
- 3 Department of Mathematics, University of Eswatini, Kwaluseni Campus, Kwaluseni, Eswatini
- 4 Department of Mathematics and Computer Science, UMYU, Katsina, Nigeria
Journal of Mathematical Finance·Volume 10 (2020)·Pages 525–535·Published 10 October 2020·DOI10.4236/jmf.2020.104032
Copy link · social · email
Abstract
Motion picture derivatives have proved valuable in hedging financial risk of the movie industry. However, the existence of pseudo assets within certain category of movie contingencies makes market trading below capacity due to hyper level pricing arbitrage. This paper analyzes pseudo assets lying within movie contingencies and develops a stochastic pricing strategy under no arbitrage condition. Demonstration of the application of derived formulas is provided as examples and remarks over imposed effects sequel to sub pseudo contingencies. Accordingly, the results derived here are aids of assistance for movie investors relative to financing pseudo asset ventures for the purpose of valuation.
KeywordsMotion PicturesPseudo AssetPricing StrategyFree Lunch with Vanishing RiskContingencies
- Pangarker, N.A. and Smit, E.V.D.M. (2013) The Determinants of Box Office Performance in the Film Industry Revisited. South African Journal of Business Management, 44, 47-58. https://doi.org/10.4102/sajbm.v44i3.162
- Bhattacharjee, M. (2019) 3 Ways Bollywood Can Help Shape the Future of Globalization. World Economic Forum 2019. https://www.weforum.org/agenda/2019/01/how-can-bollywood-shape-the-future-of-globalization/
- Orero, P. (2006) Synchronization in Voice-Over. In Bravo, J.M., Ed., A New Spectrum of Translation Studies, Publicationes de la Universidad de Valladolid, Valladolid, 225-264.
- Gemma, K. (2018) Contemporary French Cinema and the Langue de Passage: From Dheepan to Welcome. French Cultural Studies, 29, 39-48. https://doi.org/10.1177/0957155817738673
- Seong, W.P. (2009) The Present and Future of Americanization in South Korea. Journal of Futures Studies, 14, 51-66.
- Abed El-Rahman, T. (2015) Understanding Arab Culture through Cinema. Cultural Encounters, Conflicts, and Resolutions, 2, Article 7.
- Marshall, M. (1967). The Medium Is the Message. History of Communication Communications, Penguin Book Publication.
- Johan, S. and Lennart, L. (2019) Nonlinear System Identification: A User-Oriented Roadmap. 1-121. https://arxiv.org/pdf/1902.00683.pdf
- Oksendal, B. (2000) Stochastic Differential Equations. 5th Edition, Springer-Verlag, Berlin.
- Doshi, K. (2004) Arbitrage and International Trade and Finance. Qrius. https://qrius.com/arbitrage-and-international-trade-and-finance/
- Tuovila, A. (2019) Deadweight Loss. Investopedia. https://www.investopedia.com/terms/d/deadweightloss.asp
- Edmans A., Goldstein, I. and Jang, W. (2015) Feedback Effects, Asymmetric Trading, and the Limits to Arbitrage. American Economic Review, 105, 3766-3797. https://doi.org/10.1257/aer.20141271
- Munday, J. (2009) The Routledge Companion to Translation Studies. Routledge, Abingdon, 304.
- Mares, P. (2011) Media Consulting Group. Study on the Use of Subtitling. EACEA, Brussels.
- Sepielak, K. (2011) Voice-Over versus Voice-Over: Professional Point of View on Voice-Over in Poland. The 4th International Media for All Conference-Audivisual Translation: Taking Stock, London, 28 June-1 July 2011.