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Black-Scholes Imolied volatility (8SIV) has a few drawbacks. One is that the model Is not much successful in fitting the option prices. and It Is n야 guaranteed the model is correct one. Second. the usual tradition in using the BSIV is that only at-the-money Options are used. It is well-known that IV's of In-the-money or Qut-of-the-money ootions are much different from those estimated from near-the-money options.

In this regard, a new model is confronted with Korean market data. Brittenxmes and Neuberger (2000) derive a formula for volatility which is a function of option prices‘ Since the formula is derived without using any option pricing model. volatility estimated from the formula is called model-tree implied volatillty (MFIV). MFIV overcomes the two drawbacks of BSIV. Jiang and Tian (2005) show that. with the S&P index Options (SPX), MFIV is suoerlor to historical volatility (HV) or BSIV in forecasting the future volatllity.

In KOSPI 200 index options, when the forecasting performances are compared, MFIV is better than any other estimated volatilities. The hypothesis that MFIV contains all informations for realized volatility and the other volatilities are redundant is oot rejected in any cases.

When the Black-Scholes assumptions hold market is instantaneously complete and options are redundant securities. This paper tests whether options are needed for spanning of the pricing kernel in addition to the risk-free bond and underlying asset in Korean stock index options market. Using Hansen's GMM estimation method, we find that pricing kernel cannot be spanned with the risk-free bond and underlying asset. Options are needed for spanning to incorporate the additional risk factor. This result is consistent with previous results using American options market data.

The purpose of this article is to analyse and illustrate selected aspects of management in South Korea. South Korean management is placed within its South East Asian context; but western influences on it are also identified. Parallels with French management are drawn. The article describes the national and business culture of South Korea. It analyses prevailing approaches to organisation and communication. It discusses and illustrates the changing role of the taipan, the family, the clan, and professional management within the context of the ownership and management of Korean enterprises. It examines working practices and relations. It analyses and comments on style of management. It deals with issues of internationalisation and globalisation. The article concludes by analysing a number of issues that are likely to affect South Korean management after the crisis of 1997‐1998, and more generally in the foreseeable future. The analysis is illustrated by a variety of case examples.

Korean firms are in the process of transforming their human resource management (HRM) systems to compete effectively in the global market. Whereas the traditional HRM system emphasized group harmony and age norms, the “new HR policy” emphasizes a performance‐based system. Whether the new HR policy can achieve its objectives remains to be seen. This radical change from the traditional HRM system to a new one is likely to cause a variety of problems. Discusses, specifically, four potential problems in the case of Samsung.