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Much debate was brought forth during the South Korean credit card companies' liquidity crisis in 2003. This paper is an in-depth analysis of those credit card issuers' option embedded commercial paper (mentioned as ‘option CP’ henceforth). The main purpose of this paper is in evaluating the ‘option CP's fair value, with the decomposition and analysis on ‘option CP’.

Option CP is stipulated as a CP joined by an OTC credit derivative product. The structure is set so that anyone of the two options, put options and call options, will be executed.

Therefore, the price of option CP excluding the credit option portion will be equal to that of the standard coupon bond at the same maturity.

However, empirical evidence shows otherwise. The evidence clearly states that the option CP yield rates were generally quoted lower than the fair-value rates, even if option premium of credit option portion was included in calculating the value. This evidence has an implication that ‘option CP’s rates are generally issued and traded with unfair value. This paper has significance that it made valuation model of ‘option CP’ and evaluated its fairness, by way of the in-depth analysis of option CP which has not been before.

This paper analyses three strategies in customers’ use to afford consumption in a developed and an emerging market for different product groups. The strategies are: (1) usage of loyalty cards, (2) usage of credit cards and (3) usage of long-term credits.

Mall intercept surveys conducted in Poland (emerging market) and Germany (developed market) provide data for testing a set of hypotheses using ANOVAs.

Results show that customers in emerging markets show no differences in the usage of loyalty cards for product categories with high shopping frequency (groceries) compared to developed markets, while in all other product categories loyalty card usage is stronger. Results show further that in low price categories, customers in emerging markets use credit card payments more often compared to customers in developed markets. In high price categories, they use credit cards less often, but long-term credits more often.

Results have implications for the design of loyalty programs and payment options in different markets. Results have also implications for public policy regarding concerns about increasing private debt in emerging countries.

This paper suggests a cost-benefit framework where customers in emerging countries perceive benefits of loyalty cards and credit options higher, while they are willing to bear higher costs. As a result, effects of product category characteristics on usage that are observable in developed markets do not exist in emerging markets.

The purpose of this paper is to extend the models of Johnson and Stulz, Klein and Klein and lnglis to analyse the properties of vulnerable American options.

The presented model allows default prior to the maturity of the option based on a barrier which is linked to the payoff on the option. Various measures of risk denoted by the standard Greek letters are studied, as well as additional measures that arise because of the vulnerability.

The paper finds that the delta of a vulnerable American put does not always increase with the price of the underlying asset, and may be significantly smaller than that of a non‐vulnerable put. Because of deadweight costs associated with bankruptcy, delta and gamma are undefined for some values of the underlying asset. Rho may be considerably higher while vega may be smaller than for non‐vulnerable options. Also, the probability of early exercise for vulnerable American options is higher and the price of the underlying asset at which this is optimal depends on the degree of credit risk of the option writer.

This paper makes a contribution to understanding the effect of credit risk on option valuation.

Late last year, the NRMA, with Payment Systems Inc and Touche Ross, organised a three‐day conference devoted to the future of consumer credit in Europe. This paper by Michael Bliss featured in the proceedings, and takes up the topic of credit in relation to Debenhams' activities. Debenhams have used their credit card facility to its full potential. Employing all the forces of marketing, advertising and in‐store selling, they have pushed on to a time when they can look forward, not only to consumer loyalty, but to profits as well, when in the past credit has been a subsidised service to the selling operation. Now read on.

Schools should be adequately built and operated to protect students' health. Green building rating systems, including Leadership in Energy and Environmental Design (LEED), assist the construction industry in improving both the resource efficiency and indoor environmental quality of its buildings. Construction professionals may waive some green modifications and available optional credits due to their high costs or construction complexities. This study investigates whether cost-effective green modifications can adequately address the student health.

In an effort to identify how school projects in Dubai, UAE prioritized LEED credits related to occupant well-being, the study identified eight LEED credits (called “Health and wellbeing” credits). Cost data from a sample of nine Dubai schools were used to develop an indicator, named the Feasibility Index Score (FIS), to quantify the attractiveness of LEED credits based on their cost and implementation complexity. Physical measurements taken from the sample schools give a window into current indoor environmental quality (IEQ) conditions of schools in the local region, while FIS provides insight into potential financial barriers towards improving these conditions.

The authors identified eight “Health and wellbeing” credits, which may net up to 14 points or 13% of all possible LEED points. Despite this, assessments of the sample schools revealed that six of the “Health and wellbeing” credits exhibited relatively low FIS values. This may cause these credits to be waived when lower tiers of LEED certifications are desired.

A sample of nine schools was chosen for this research; further investigation using a greater sample size is recommended.

The paper's IEQ assessment indicates the importance of health-related credits and suggests implementing them regardless of their FIS.

This paper recognizes the importance of providing more weight to credits that directly impact the health of occupants, particularly when upgrading existing structures.

The authors provide the reader with a simple introduction to credit derivatives. The article includes a broad overview of the market, estimates of the global market size, and a description of the most widely used products.

Only a small proportion of consumer borrowing is provided by bank and retailer credit cards. Discusses how recent changes in credit card terms and societal attitudes may further reduce that borrowing. Suggests debit cards will become increasingly important as a means of payment in the UK – plastic cards in general will be used more as paper transactions decline. In Europe there may be convergence of plastic card usage with eventual reduction in the number of credit card issuers.

This study aims to examine the influence of stock liquidity on the trade credit of publicly listed companies in Saudi Arabia.

In this study various econometric models were used to test the data of 900 firms listed in Saudi Arabia during the period of 2010–2019.

The robust results of the various econometric models indicate that firms are more willing to offer trade credit to customers when stock liquidity is greater; however, they are less likely to rely on obtaining more payables from suppliers. The findings further indicate that payables and receivables are indeed related, but not exclusively, in the sense that more payables lead to more receivables. The study also reveals a pattern of persistence in payables and receivables during the period of study.

The sample of the present study is only made up of Saudi listed companies. Future research could extend the sample of this study taking into account listed firms in the Middle East and North Africa (MENA) region as a whole so as to gain more insights from the entire region including oil-producing and non–oil-producing countries. More studies are needed to further examine the impact of alternative options for credit access and their linkage to stock liquidity. Finally the difference in difference (DiD) method of analysis as quasi experimental method can be another extension of this research.

The findings would provide implications for managers and investors by recognizing the potential role of stock liquidity in affecting trade credit and understanding the association between the stock liquidity and trade credit. Management of the firms should look for the ways to enhance the stock liquidity of the firms so as to help in reducing the extreme debts usage and therefore, alternative source of funds can be available accordingly. Once the advantage of stock market is identified, firms' managers should search for chances and policies that can promote stock liquidity and hence make use of the advantages of being liquid.

This paper provides new evidence from the emerging market, particularly the Saudi Arabia. The attempt is one of the first in the region to broaden the knowledge about the effects of stock liquidity on trade credit. It provides market participants with insights on the role of stock liquidity in financial flexibility.

Three distinct groups of banking customers in New Zealand are identified on the basis of their preferences for different payment methods. These are profiled in terms of membership of wider lifestyle groupings, as well as their demographic and socio‐economic characteristics, and other financial behaviours. The results demonstrate how psychological profiling can help in understanding consumers’ banking behaviour and preferences in the wider context of their lifestyle, as well as suggesting strategic directions banks can adopt.

This research seeks to explore current attitudes, motivations and behaviours in relation to student credit and debt consumption in the UK and Ireland.

Key qualitative consumer research based on 20 interviews with Irish and UK higher education students is presented.

The findings highlight that, while the UK and Irish student contexts are significantly different in terms of accommodation costs, tuition fees and living expenses, many Irish students reported relatively high debt levels, with some exceeding their UK counterparts. The research identifies key contextual factors associated with the credit‐friendly environment in which students live in addition to shedding light on student orientation towards credit and debt, with specific conclusions for future student debt.

Given the rise in debt and its detrimental consequences, the study has far‐reaching implications for policy makers, consumer agencies financial providers and marketers in terms of creating an environment where good student financial capability and management is developed and facilitated through increased financial education and regulation. The research has implications for other western countries in terms of predicting comparative trends in student credit and debt attitude and behaviour.

This paper addresses the lack of analytical and academic commentary exploring the dynamics and nature of student credit and debt, particularly within an Irish context, in addition to providing a cross‐cultural comparison between credit and debt consumption in Ireland, where debt is a relatively new phenomenon, and the UK, a country well‐entrenched in debt.