This article provides a detailed theoretical justification for the application of gravity model in the context of India’s trade relation with other BRICS countries. Based on 20 years data set from 1990 to 2010, the study finds that there is a positive relationship between gross national product (GNP)/ per capita GNP of the nation and its volume of trade. Also the study finds that where as the transport cost play a negative role in influencing foreign trade among BRICS nations, other variables related to foreign trade like exchange rate, inflation and import-GDP ratio does not play a major role in influencing it.
Asian options is a contract which gives right to the holder to buy/sell the underlying asset for its average price over prescribed period and it has a lower unpredictability, hence exposing cheaper relative to their European counterparts. Asian options are commonly traded on currencies and commodity products which have low trade volumes. Therefore, the pricing of such options become one of the most interesting fields. Much research work has been done on the European and American options using various techniques like Black-Scholes, binomial tree, finite difference, Monte Carlo and Quasi-Monte Carlo model. But none of the studies compares and identified the best model for options pricing, particularly for Asian options pricing. This article aims to evaluate the effectiveness of existing models on Asian options pricing and to suggest a suitable model for forecasting Asian options prices. Findings of the study indicate that the Quasi-Monte Carlo technique is more superior to any other techniques due to its results with high precision and low standard deviation.
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