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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.

Counterparty risk is usually defined as the risk which stems from the fact that the counterparty of a derivative contract is not solvent before or at expiration. As most of the derivative trading activity has been moving from standardized products quoted on futures‐style markets, towards customized products traded on over‐the‐counter markets, the issue of counterparty risk evaluation has increasingly gathered momentum and is now one of the hot topics in option pricing theory. The corresponding options are named vulnerable.

The purpose of this paper is to create a resilient supply chain (SC) plan to contain disruptions and risks in the overall operations of a business.

The study integrates resilience considerations in a business planning model that formulates resilience performance (RP) of SC functions in terms of flexibility, reliability, and similar system factors. It evaluates the RP of SC plans and determines their vulnerability considering required and planned resources. The model estimates the possible effects of disasters on vulnerable functions using a scenario-based analysis and plans containment options. It also includes decision options for deploying resources to achieve the expected levels of resilience by preventing potential vulnerabilities. The model takes optimum decision in a what-if approach by comparing performance of the existing business plan, with options for containing the vulnerabilities inherent in not considering potential risks when planning to fulfill market demand, and the performance of a resilient plan that includes decision options to prevent vulnerabilities where possible and mitigate them otherwise.

It is possible, for example, to evaluate RP of SC plans, identify vulnerable functions, and decide optimum option to create resilient business system.

The present study takes a generic approach and creates bases to explore its application in any industry-based case.

The research introduces formulations for RPs and vulnerability indices that can be included in a planning model to create a resilient SC.

Owing to the fact that the over-the-counter (OTC) market has no organized exchange, the options traded in the OTC market are more likely to be exposed to credit risk, Asian options being one of them. In this chapter we first discuss the pricing of geometric Asian options and the Black–Scholes options model subject to credit risk. We then combine the two models to derive a closed-form formula for pricing a geometric Asian option subject to the credit risk. The numerical analysis reveals that other pricing formulae existing in the literature can cause serious pricing errors when there is a possibility of default in reality.

This study offers an understanding of vulnerable populations' experiences of actual use of mobile banking and their expectations of mobile banking (MB).

Data were generated from MB customers and bankers using online reviews, focus groups and semi-structured interviews, as a mix of methods and sources can provide rich and in-depth understanding.

The affordance of MB for vulnerable populations is explained in four concepts: meaning, material, competency and usability. Recommendations that could further engage and improve the service quality of MB apps for vulnerable populations include customization and personalization of services, access to the digital health data of members of vulnerable populations, audio-based option selection and touchscreen options, and enhancement of service and performance standards.

It is suggested that retail bankers should improve the service quality and performance of their MB apps by considering the recommendations drawn from vulnerable people's experiences. This study discusses implications for retailers.

This study applied social practice theory and affordance of technology theory to understand how those in vulnerable populations experienced MB apps; the results could be used to improve the accessibility, performance and service quality of MB apps.

The purpose of this paper is to present a framework for estimating the costs of adaptation to climate change impacts on ecosystems.

While existing studies on costing adaptation base themselves on either the financial flows on conservation or the costs of specific adaptation measures at the global level, the methodology presented here takes into account the impacts on ecosystems, the identification of vulnerable areas, and adaptation options at a more regional level.

The framework is then applied to forest ecosystems in India. The authors find that the total adaptation costs for forest ecosystems in India until 2085 are in the range of $1.34‐2.32 billion.

The key contribution of this paper is the proposal that for any robust estimation of adaptation costs, people should take into account the regional level impacts and the multiple adaptation options linked to those impacts.

The purpose of this paper is to theoretically examine the risk-taking decision of corporate defined benefits (DB) plans. The equity holders’ investment problem that is represented by the position of a vulnerable option is solved.

The simple traditional contingent claim approach is applied, which considers only the distributions of corporate cash flow, without the model expansions, such as market imperfections, needed to explain the firms’ behavior for DB plans in previous studies.

The authors find that the optimal solution to the equity holders’ DB investment problem is not an extreme corner solution such as 100 percent investment in equity funds as in the literature. Rather, the solution lies in the middle range, as is commonly observed in real-world economies.

The major value of this study is that it develops a clear mechanism for obtaining an internal solution for the equity holders’ DB investment problem and it provides the understanding that the base for corporate investment behavior for DB plans should incorporate the fact that in some cases the optimal solution is in the middle range. Therefore, the corporate risk-taking behavior of DB plans is harder to identify than the results of the empirical literature have predicted.

Revolving Doors Agency is currently developing an experimental housing project in Islington for prison leavers with mental health and multiple needs. The article summarises the strategic context and research that demonstrates the need for such services, provides an outline for a model of practice and provides recommendations for the development of housing options for vulnerable prison leavers.

This chapter highlights ecosystem-based adaptation in coastal Bangladesh aimed at securing climate and disaster-resilient environment for safer life and livelihood for vulnerable communities in the face of changing climate. Development intervention based on the opportunities offered by the nature and adaptation management plan from the perspective of vulnerability analysis can make a substantive difference in enhancing resilience. Engagement of broad-based stakeholders at vertical and horizontal levels in building adaptive capacity can be linked through both at the policy and institutional levels as well as at ecosystem levels for effective results. Innovation in convergence of disaster risk reduction and adaptation through fish, fruit, and forest as a part of livelihood integrated into the coastal afforestation ensure better livelihood in a safer coastal habitats. Such forest-based adaptive livelihood and carbon sequestration help land development that is promising to offset the sea level rise due to higher rate of siltation. Climate resilient habitat is another innovative initiative that protects the households, and their livelihood is protected by eco-engineering structures and green defense to make it safer from cyclone and tidal surge.

This paper aims to explore the potential impact on families of a greater emphasis on safeguarding for vulnerable adults, from both a legal and a lay perspective.

Case examples are used to illustrate some of the issues and problems that can arise in safeguarding situations.

In community settings there can be a tendency for Social Services to take an antagonistic rather than a conciliatory approach when communicating with families. In the setting of a care home, an example of the appropriate use of safeguarding is outlined.

The authors argue that Social Services should take a more conciliatory approach and be prepared to work in partnership with families.

The discursive format and narrative approach of this paper represents a useful and informative way of presenting important and topical insights.