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The KOSPI200 mini options market, introduced in July 2015, is a market where the trading multiplier is reduced to one-fifth of the regular options. This study shows that the price discovery effect of the original options and the mini options estimated by the vector error correction model (VECM) and Hasbrouck's information share (1995, 2003), based on the regular options-mini options arbitrage and the options-spot arbitrage. The results of the empirical analysis are summarized as follows. First, in the price discovery between the regular options and the mini options, regular options dominate mini options at a statistically significant level. Second, mini options tend to lead the spot, which is stronger than the regular options. Therefore, the regular options and the mini options show asymmetrical behavior in the price discovery process of the spot, opposite to each other and are interpreted as alternative derivatives in terms of investment strategy. Considering the immaturity of mini options market established during the sample period, the price discovery is efficient even though the trading activity in the mini options is lower than that of the regular options.

The KOSPI200 mini option introduced in July 2015 is the derivative of which trading multiplier is reduced to one-fifth of the regular options. This study explored the pairs trading opportunities arising from the price spread between the KOSPI200 regular options and the mini options during the sample period from August 2015 to March 2016 and measured the profits of pairs trading. The main results are summarized as follows. First, the most frequency of pairs trading with high profit was observed for in-the-money options. On the other hands, the frequency of pairs trading opportunities is low and the profit is relatively small for out-of (at)-the money options. Second, for in-the-money options, arbitrage opportunities were captured every three minutes on an average, but the elapsed time between arbitrage opportunity opportunities on out-of-the money options exceeded 10 minutes on average. Third, pairs trading opportunities occur uniformly throughout the day, but profit tends to increase in the afternoon than in the morning. This indicates that price efficiency in options market deteriorates and profit of arbitrage trading with price disparity is higher in the afternoon than that of the morning trading. In addition, the profitability of pairs trading with low liquidity was cross-sectionally higher than those with high liquidity.

Amongst all classes of unmanned aircraft system (UAS), the rise of the Mini UAS class is the most dominant. Mini UASs are field-deployable systems and hence are not expected to operate from a runway. Therefore, the operating terrain plays an important role in the deployment and employment of the Mini UAS. However, there is limited published work in this area. The impact of terrain is more critical for military applications than civilian applications. The purpose of this paper is to explore the implications of various types of terrain on the employment and deployment of Mini UAS.

This paper explores the implications of various types of terrain on the employment and deployment of Mini UAS.

Mini UAS with field deployable requirements is often launched within the tactical battle area in case of military applications or in close proximity to the intended target area for civilian applications. Due to the size and weight of the Mini UAS, launch and recovery becomes an important factor to be considered. Rotary wing or fixed-wing vertical take-off and landing configuration UAS overcomes the limitations of Mini UAS and hence it is the preferred option. Impact of the terrain is significantly higher for military applications as compared to civil applications. Mountain terrain is the most challenging for Mini UAS operations.

This paper will help the designers configure the UAS as per the operating terrain.

Terrain affects the deployment and employment of Mini UAS and the capabilities of the system with respect to terrain in which it is expected to operate must be considered during the design of a Mini UAS. The paper will help the designers configure the UAS as per the operating terrain.

The purpose of this paper is to investigate the economics of supplying energy needs for illumination requirements by hawkers using alternatives like compact fluorescent lamps battery lamps, liquefied petroleum gas mantle lamps or supply from mini‐grids supported by local diesel generators. Further, the prevailing business models like the lamp rental and the mini‐grid models, which epitomise informal electricity markets, are also analysed.

Three localities in Kanpur city are identified and data on techno‐economic characteristics of illumination options used by hawkers are collected. To compare the available options with varying capital life‐span, equivalent annual cost approach is utilized. This is used to calculate the levelised cost of 1 kiloWalthour energy used for providing illumination.

The daily user cost of illumination ranges from Rs 6.1 to 17 (for four hours) across the four existing models studied in the paper. This translates to Rs 31.3 to 312.5 per kWh of electricity use. The technology choice by hawkers is influenced by lack of initial capital and inconvenience associated with cheaper options than overall economics of the alternative option is found.

The paper highlights the absence of financial and institutional intervention that can help significantly reduce the cost of electricity access by such users and also help adoption of greener options like solar lanterns or solar battery bank charging stations. A practical solution may include a greater role of micro‐finance institutions. Greater awareness and capacity building needs of local entrepreneurs as well as of end‐users also need attention.

This is perhaps one of the few attempts to unravel the informal electricity markets in India and help identify issues that need attention so as to address needs of millions of consumers at the margin of the electricity grid in the country.

The purpose of this paper is to develop an autoclave that can be used to assess corrosion behaviour of suitable material in high-pressure–high-temperature (HPHT) environments. Many new discoveries of oil and gas field are in HPHT environments. The development of such fields requires appropriate selection of materials that are able to withstand not just the service loads but also corrosive production fluids in the HPHT environment.

The exposure of material samples to elevated pressure and temperature is usually done using an autoclave. The suitability of an existing autoclave for HPHT corrosion studies is provided together with suggestions on necessary design modifications. An alternative design of the autoclave is proposed based on functionality requirements and life cycle cost assessment.

It is concluded that the existing autoclave was unsuitable for HPHT corrosion tests, and modifications were very expensive to implement and/or not foolproof. A new autoclave was designed, manufactured, tested and successfully used to study the effect of aqueous solution on the corrosion of a pipe subject to a combination of axial tension, internal pressure and elevated temperature.

The maximum design pressure of 15 MPa is more than sufficient for high-pressure corrosion studies in aqueous solution where partial pressure of the dissolved gas is one of the main controlling parameters. However, the design pressure is only suitable for corrosion studies in a seawater environment of up to 1,500 m water depth.

A new design of autoclave together with all the necessary piping, assembly and control system is proposed for HPHT corrosion studies. The autoclave can be used as standalone or integrated with a mechanical testing machine and thus enables corrosion studies under a wide range of loading.

The purpose of this paper is to consider surgical robotics, with a focus on technology and design issues for remote‐mode operation assistance. The investigation leads to the definition of the technical characteristics of a co‐robotic positioning device (CRPD), to be developed in support of a split‐duty approach to planning. The expected characteristics and advantages are outlined, including the operation potential of special‐purpose devices (e.g. an automatic changer for surgical tools) and of scope‐driven enhancers (e.g. the exploration of the intervention theatre).

The paper addresses example developments based on projects performed with the co‐operation of other robot laboratories in Munich and Paris. The CRPD concept is applied in relation to the DLR KineMedic^® arm (developed by the Munich laboratory), and with the LRP prototype mini‐arm (built by the Paris laboratory).

Minimally‐invasive surgery deserves increasing attention to reduce post‐operative hospital stays and to reduce complications. This leads to new trends in robotics, to facilitate safe, fast and accurate remote manipulation, and integrated computer‐aided implements. The features of the example CRPD design are summarised for the two cases.

The overall comments consider minimally‐invasive robotic surgery as a given intervention practice in the near future, and the split‐duty approach, supported by the CRPD technology, as a valuable aid for human‐robot co‐operation, according to the “best‐of‐skills” idea, supporting intervention under the surgeon's control.

This investigation shows new results aimed at expanding the operation versatility of robotics with integrated intelligence, to enhance scope‐driven alternatives and out‐of‐reach handling with improved dexterity and safe autonomic processing.

We introduce and analyze an innovative transportation system called flexible mobility on demand (FMOD). FMOD provides a menu of optimized travel options in real-time. Practical considerations related to the business model for FMOD are taken into account as a pre-study for the pilot that will be conducted in Japan.

A modeling framework of FMOD is developed that integrates scheduling, routing, assortment optimization, and choice modeling methodologies. An assortment optimization model is developed with an objective function to maximize operator profit and consumer surplus.

The FMOD system is analyzed through simulation experiments in a Japanese case study. Simulations are presented for Hino city in Tokyo with different numbers of vehicles in the fleet. This analysis provides insights about the fleet size necessary to maintain reasonable levels of operator profit and consumer surplus.

We consider a business model for FMOD that offers flexibility to the operator in terms of who provides resources. The resources are managed with dedicated and non-dedicated services. The experiment indicates that operators can determine the size of the dedicated fleet based on an objective function that maximizes operator profit and passenger satisfaction.

After completion of the case study, the students will be able to understand the different risks associated with a business, focusing on price risk and the importance of price risk management in business; understand and evaluate the products available for hedging price risk through exchange-traded derivatives in the Indian scenario; and understand and evaluate the different strategies for price risk management through exchange-traded derivatives in the Indian scenario.

The case study pertains to a small business, M/s Sethi Jewellers. The enterprise is being run by Shri Charan Jeet Sethi and his son Tejinder Sethi. The business is located in Jain Bazar, Jammu, UT, in Northern India. The business was started in 1972 by Charan Jeet’s father. They deal in a wide range of jewelry products and are well-established jewelers known for selling quality ornaments. Tejinder (MBA in marketing) was instrumental in revamping his business recently. Under his leadership, the business has experienced rapid transformation. The business has grown from a one-room shop fully managed by Tejinder’s grandfather to a multistory showroom with several artisans, sales staff and security persons. Through his e-store, Tejinder has a bulk order from a client where the client requires him to accept the order with a small token at the current price and deliver the final product three months from now. Tejinder is in a dilemma about accepting or rejecting the large order. Second, if he accepts, should he buy the entire gold now or wait to buy it later at a lower price? He is also considering hedging the price risk through exchange-traded derivatives. However, he is not entirely sure, as he has a few apprehensions regarding the same, and he is also not fully aware of the process and the instruments he has to use for hedging the price risk on the exchange.

The case study is aimed to cater to undergraduate, postgraduate and MBA students in the field of finance. This case study can be used for students interested in commodity derivatives, risk management and market microstructure.

Teaching notes are available for educators only.

CSS 1: Accounting and finance.

There are two major exhibitions in November which, between them, can be relied upon to provide something of interest to just about everybody who is interested in data processing.