Abstract:
We develop a theoretical trading conditioning model subject to price volatility and return information in terms of market psychological behavior, based on analytical transaction volume-price probability wave distributions in which we use transaction volume probability to describe price volatility uncertainty and intensity. Applying the model to high frequent data test in China stock market, we have main findings as follows: 1) there is, in general, significant positive correlation between the rate of mean return and that of change in trading conditioning intensity; 2) it lacks significance in spite of positive correlation in two time intervals right before and just after bubble crashes; and 3) it shows, particularly, significant negative correlation in a time interval when SSE Composite Index is rising during bull market. Our model and findings can test both disposition effect and herd behavior simultaneously, and explain excessive trading (volume) and other anomalies in stock market.

Abstract:
The option is viewed as an important tool of setting price in accordance with objective benefits and actual effectiveness of information commodities, as ensures that the holder of the option right acquires more benefits in the favorable market and reduces losses in the adverse market. And the information market, as a kind of typical monopolistic and com-petitive market, is especially adequate for introducing the option theory to set more reasonable price and further to improve the operational efficiency of information market. Hence, it is quite necessary to apply the option theory to the transaction of information commodities. In this paper, after analyzing the applicability of the option theory to the in-formation market and studying the option price of information commodities, the authors put forward the option price model of the transaction, followed by a case study to demonstrate the validity of the model.

Abstract:
In a market with transaction costs, the price of a derivative can be expressed in terms of (preconsistent) price systems (after Kusuoka (1995)). In this paper, we consider a market with binomial model for stock price and discuss how to generate the price systems. From this, the price formula of a derivative can be reformulated as a stochastic control problem. Then the dynamic programming approach can be used to calculate the price. We also discuss optimization of expected utility using price systems.

Abstract:
We study a single risky financial asset model subject to price impact and transaction cost over an finite time horizon. An investor needs to execute a long position in the asset affecting the price of the asset and possibly incurring in fixed transaction cost. The objective is to maximize the discounted revenue obtained by this transaction. This problem is formulated as an impulse control problem and we characterize the value function using the viscosity solutions framework. We establish an associated optimal stopping problem that provides bounds and in some cases the solution of the value function.

Abstract:
We study a single risky financial asset model subject to price impact and transaction cost over an infinite horizon. An investor needs to execute a long position in the asset affecting the price of the asset and possibly incurring in fixed transaction cost. The objective is to maximize the discounted revenue obtained by this transaction. This problem is formulated first as an impulse control problem and we characterize the value function using the viscosity solutions framework. We also analyze the case where there is no transaction cost and how this formulation relates with a singular control problem. A viscosity solution characterization is provided in this case as well. We also establish a connection between both formulations with zero fixed transaction cost. Numerical examples with different types of price impact conclude the discussion.

Abstract:
We study the effect of drift in pure-jump transaction-level models for asset prices in continuous time, driven by point processes. The drift is as-sumed to arise from a nonzero mean in the efficient shock series. It follows that the drift is proportional to the driving point process itself, i.e. the cumulative number of transactions. This link reveals a mechanism by which properties of intertrade durations (such as heavy tails and long memory) can have a strong impact on properties of average returns, thereby poten-tially making it extremely difficult to determine long-term growth rates or to reliably detect an equity premium. We focus on a basic univariate model for log price, coupled with general assumptions on the point process that are satisfied by several existing flexible models, allowing for both long mem-ory and heavy tails in durations. Under our pure-jump model, we obtain the limiting distribution for the suitably normalized log price. This limiting distribution need not be Gaussian, and may have either finite variance or infinite variance. We show that the drift can affect not only the limiting dis-tribution for the normalized log price, but also the rate in the corresponding normalization. Therefore, the drift (or equivalently, the properties of dura-tions) affects the rate of convergence of estimators of the growth rate, and can invalidate standard hypothesis tests for that growth rate. As a rem-edy to these problems, we propose a new ratio statistic which behaves more

Abstract:
In markets with transaction costs, consistent price systems play the same role as martingale measures in frictionless markets. We prove that if a continuous price process has conditional full support, then it admits consistent price systems for arbitrarily small transaction costs. This result applies to a large class of Markovian and non-Markovian models, including geometric fractional Brownian motion. Using the constructed price systems, we show, under very general assumptions, the following ``face-lifting'' result: the asymptotic superreplication price of a European contingent claim $g(S_T)$ equals $\hat{g}(S_0)$, where $\hat{g}$ is the concave envelope of $g$ and $S_t$ is the price of the asset at time $t$. This theorem generalizes similar results obtained for diffusion processes to processes with conditional full support.

Abstract:
Kerberos is a network authentication protocol. It is designed to provide strong authentication for client/server applications by using secret-key cryptography. Kerberos was created by MIT as a solution to network security problems. The Kerberos protocol uses strong cryptography so that a client can prove its identity to a server (and vice versa) across an insecure network connection. After a client and server have used Kerberos to prove their identity, they can also encrypt all of their communications to assure privacy and data integrity as they go about their business. In this paper we tried to implement authentication and transaction security in a Network using Kerberos. This project is embedded with Authentication Server application and used to derive a 64 bit key from user’s password. This key is used by authentication server, to encrypt ticket granting ticket + session key. The key generated by authentication server will be used by the client at the time of transaction through the transaction server to authenticate that transaction client is valid or not

Abstract:
E-commerce applications are becoming popular day by day as they are working like a virtual shop. Writing good E-commerce application is tedious task and complex also. The applications if made complex are very difficult to maintain. Usability is a very basic concept in the E-commerce application. User has to get the information at one click and with proper feedback. As these are web based applications efficiency matters a lot for this application. As transaction in e-commerce faces the problems such as database exploits, log data mining and sniffing attacks which can be resolved by using different security measure. Hence security is important in e-commerce application

Abstract:
This article presents a critique of the Copenhagen Consensus Center's(CCC) exhaustive study on transnational terrorism, published in 2008.The implications of this study are controversial, yet highly relevant in today's economic environment. The Obama administration must come toterms with fiscal realities that will challenge budget priorities and invigorate what will undoubtedly prove to be tough negotiations on Capitol Hill for homeland security dollars. It is proposed here that standard economic tools such as benefit cost analysis, cost effectiveness criteria, and simulation models can help identify areas where security can be either extended or improved using fewer resources. Greater movement towards competitive procurement practices will also result in lower costs and higher returns on security investments.