One basic assumption of Black-Scholes model Essays

One basic assumption of Black-Scholes model Essays One basic assumption of Black-Scholes model Essay One basic assumption of Black-Scholes model Essay One basic assumption of Black-Scholes model is that the stock price is log-normally distributed with constant volatility. However, in option market, does this assumption hold? In our paper, we try to show how wrong Black-Scholes is by challenging this assumption and illustrate the difference between Black-Scholes and real world. Method used to exam mispricing problem of Black-Scholes model About Mixlognormal: The probability distribution of the stock price might be made up of a mixture of two lognormal distributions, one for the possibility of an increase in share price and the other one of a decrease. In this way, we can capture the empirical distribution of stock price; its shape must be more accurate and accordingly more likely to be the same as the distribution of the companys share price in the real world. (Precisely, if we can employ more lognormal distributions to obtain the possibility for the movement of share price, we would get better distribution to describe real world.) Therefore, we could simply test the accuracy of Black-Scholes model by comparison. About Data: We chose Six Continents as our target company to do our analysis and made a comparison between its mixlognormal distribution and Black-Scholes lognormal distribution. We chose Feb 19th as the big event date for the company, because there was a takeover bid from the management of Pizza Express on that day. The share price of Six Continents jumped more than 10% on Feb 19th and the trading volume increased more than 200%. The dates before and after the big event date are Feb 18th and Feb 20th respectively. Following this way, the mispricing drawback of Black-Scholes might be detected more easily due to the noise of big event. Interpretation of the results Using the Excel VBA programme, we got the Black- Scholes lognormal distribution and mixlognormal distribution for these two particular days. The lognormal distribution of Black-Scholes is shown in blue and the mixlognormal distribution is shown in pink. Figure 1 Mixlognormal distribution and lognormal distribution for Six Continent options on 18th, Feb 2003. Figure 2 (Figure 1 and 2 are consistent with each other. Both illustrate the option is mispriced by Black-Scholes.) Comparing these two distributions (i.e. figure 1) of the date of Feb 18th, we find that: 1, the mixlognormal distribution has a fatter left tail and thinner right tail than the lognormal distribution (This phenomenon is also supported by empirical evidence when some people analysed the S;P 500 index), and 2. Both sides of the tails in mixlognormal distribution are longer as well. 3. The right tail is longer than the left tail. For the first finding, it means that in the more accurate scenario, the volatility used to price a low strike price option (i.e. a deep-out-of-the-money put or a deep-in-the-money call) is higher than that used to price a high-strike-price-option (i.e. a deep-in -the-money put or a deep-out-of-the-money call). The second finding means that the Black-Scholes lognormal distribution chops some small probability events, but in fact, these small probability events do exist in real world. The explanation of the third finding is that the bid proposal for Six Continent leaked before the announcement date. Investors have taken the probability of takeover into consideration and predict the price will go up. The probability of the share price going up is bigger than the probability of its going down, the right tail is longer. Figure 3 Mixlognormal distribution and lognormal distribution for Six Continent options on 18th, Feb 2003. Figure 4 Comparing the mixlognormal figure with the lognormal one (i.e. figure 3) of the date of Feb 20th, we find that: 1. This relationship of the two distributions is similar to those of the date of Feb 18th. 2. The left tail is still a little bit fatter and the right side a little thinner in the mixlognormal than that of lognormal. 3. The right tail is longer than of the left tail. The interpretations of this figure are the same to the above ones. From the above comparison and analysis, we can find the reason that Black-Scholes model is often shown to misprice out-of -the money and in-the-money options relative to their at-the-money counterparts: the assumption, which states that future stock price have a lognormal distribution and equivalently future returns have a normal distribution (which both results from the assumption of stock prices following a geometric Brownian motion.), is invalid. If this assumption is neglected, the risk neutral probability density does not necessarily fall into the family of lognormal distributions but can be shaped differently. This implies, that lognormal parametric estimation of risk-neutral probabilities leads to wrong result. When we move the two mixlognormal distributions (i.e. figure 6) together and also the two Black-Scholes distributions (i.e. figure 5) together, it is obvious to find that beside the mean of the share price moving to high level, the volatility shape changes a little. The left tail of figure before the big event dates is much fatter than the left tail of the figure after the big event date. Figure 5 Lognormal distributions of Six Continent options on 18th and 20th of Feb 2003. Figure 6 Mixlognormal distribution of Six Continent options on 18th and 20th of Feb 2003. This is understandable if we accept the explanation for the volatility smile when concerns leverage. It says that as a companys share price declines in the value, the companys leverage increases. Thus the equity of the company becomes more risky and its volatility increases. When the companys share price increases, leverage decreases, then the equity become less risky and its volatility decreases. Since the bid for the Six Continents was accepted as favourable news for the shareholders, the share price had a big jump. According to the above explanation, its shares become less risky and thus lower volatility, so the left tail becomes thinner. Conclusion We estimated risk neutral density of equity option prices and compared mixlognormal distribution and lognormal distribution before and after big event. We found that the assumption (stock prices are log-normally distributed) of Black-Scholes does not hold in the real world and this hole can make the options mispriced. Appendix 1: The raw data of lognormal distribution for Six Continent options on 18th, Feb 2003. Trade 18-Feb-03 Maturity 16-Apr-03 r 0 T 0.1561644 F 554.5 sigma 0.4091905 mkt call strikes BS theory Sq Error moneyness weigted sq error 196 360 194.58 2.01 194.5000 0.0103 166.5 390 164.89 2.59 164.5000 0.0157 138 420 135.86 4.57 134.5000 0.034 101.5 460 99.5 3.98 94.5000 0.0421 69 500 67.93 1.14 54.5000 0.0211 38 550 37.88 0.01 4.5000 0.0032 17.5 600 18.77 1.62 45.5000 0.0356 7 650 8.34 1.8 95.5000 0.0188 2.5 700 3.36 0.75 145.5000 0.0051 1 750 1.25 0.06 195.5000 0.0003 0.5 800 0.43 0 245.5000 0 18.53 0.1862 Appendix 2: The raw data of lognormal distribution for Six Continent options on 20th, Feb, 2003. Trade 37672 Maturity 37727 r 0 T 0.15068493 F 615.5 sigma 0.36813434 mkt call strikes BS theory Sq Error moneyness weigted sq error 256.5 360 255.5013903 0.997221354 255.5 0.003903019 227 390 225.5132704 2.210364876 225.5 0.009802062 197 420 195.5835263 2.006397745 195.5 0.010262904 157.5 460 156.0819138 2.010968563 155.5 0.012932274 119.5 500 118.0715084 2.040588233 115.5 0.017667431 76.5 550 75.70383997 0.633870793 65.5 0.009677417 42.5 600 42.91727918 0.174121912 15.5 0.011233672 21 650 21.38061239 0.144865789 34.5 0.004199008 9 700 9.401761762 0.161412513 84.5 0.001910207 3.5 750 3.688784898 0.035639738 134.5 0.000264979 1 800 1.308782808 0.095346823 184.5 0.000516785 0.5 850 0.425705755 0.005519635 234.5 2.35379E-05 10.51631797 0.082393295 Appendix 3: The raw data of mixlognormal distribution for Six Continent options on 18th, Feb, 2003. Trade 18-Feb-03 Maturity 16-Apr-03 r 0 T 0.1561644 F 554.5 F1 613.42684 sigm1 0.0050015 F2 545.13413 sigma2 0.4331614 p 0.1371431 Cmarket X Cimplied (Cmarket-Cimplied)^2 Implied sigma by BS 196 360 194.6650299 1.782145105 0.605651935 166.5 390 165.1475618 1.82908915 0.53766516 138 420 136.4577704 2.378472184 0.502173454 101.5 460 100.7421585 0.574323782 0.454991983 69 500 69.60810609 0.369793012 0.424942163 38 550 38.86792249 0.753289445 0.410555737 17.5 600 17.00376787 0.246246324 0.393289282 7 650 6.928636732 0.005092716 0.38547187 2.5 700 2.914632833 0.171920386 0.382378979 1 750 1.14301875 0.020454363 0.394114927 0.5 800 0.422795028 0.005960608 0.417111769 8.136787075 Appendix 4: The raw data of mixlognormal distribution for Six Continent options on 20th, Feb 2003 Trade 20-Feb-03 Maturity 16-Apr-03 r 0 T 0.1506849 F 615.5 F1 631.64945 sigm1 0.005 F2 613.47651 sigma2 0.3942533 p 0.1113462 Cmarket X Cimplied (Cmarket-Cimplied)^2 Implied sigma by BS 256.5 360 255.5039835 0.992048772 0.684121728 227 390 255.5291768 2.163320768 0.634591317 197 420 195.6487533 1.825867624 0.544725925 157.5 460 156.3364319 1.353890697 0.457835271 119.5 500 118.6654525 0.696469529 0.411053745 76.5 550 76.50974266 9.49E-05 0.380098628 42.5 600 42.7445391 0.059799374 0.363618501 21 650 20.42471433 0.330953606 0.363939585 9 700 9.572591543 0.327861075 0.362150688 3.5 750 4.077689599 0.333725272 0.363395708 1 800 1.597153827 0.356592693 0.351554917 0.5 850 0.581926491 0.00671195 0.376206304 8.447336279

Thirty Years War Battle of Rocroi

Thirty Years' War Battle of Rocroi In early 1643, the Spanish launched an invasion of northern France with the goal of relieving pressure on Catalonia and Franche-Comtà ©. Led by General Francisco de Melo, the mixed army of Spanish and Imperial troops crossed the border from Flanders and moved through the Ardennes. Arriving at the fortified town of Rocroi, de Melo laid siege. In an effort to block the Spanish advance, the 21-year old Duc de dEnghien (later the Prince of Conde), moved north with 23,000 men. Receiving word that de Melo was at Rocroi, dEnghien moved to attack before the Spanish could be reinforced. Summary Approaching Rocroi, dEnghien was surprised to find that the roads to the town were not defended. Moving through a narrow defile flanked by woods and marsh, he deployed his army on a ridge overlooking the town with his infantry in the center and cavalry on the flanks. Seeing the French nearing, de Melo formed up his army in a similar fashion between the ridge and Rocroi. After camping overnight in their positions, the battle began early on the morning of May 19, 1643. Moving to strike the first blow, dEnghien advanced his infantry and the cavalry on his right. As the fighting began, the Spanish infantry, fighting in their traditional tercio (square) formations gained the upper hand. On the French left, the cavalry, despite dEnghiens orders to hold their position charged forward. Slowed by soft, marshy ground, the French cavalrys charge was defeated by the German cavalry of Grafen von Isenburg. Counterattacking, Isenburg was able to drive the French horsemen from the field and then moved to assault the French infantry. This strike was blunted by the French infantry reserve which moved forward to meet the Germans. While the battle was going poorly on the left and center, dEnghien was able to achieve success on the right. Pushing Jean de Gassions cavalry forward, with support from musketeers, dEnghien was able to rout the opposing Spanish cavalry. With the Spanish horsemen swept from the field, dEnghien wheeled Gassions cavalry around and had them strike the flank and rear of de Melos infantry. Charging into the ranks of German and Walloon infantry, Gassions men were able to force them to retreat. As Gassion was attacking, the infantry reserve was able to break Isenburgs assault, compelling him to retire. Having gained the upper hand, by 8:00 AM dEnghien was able to reduce de Melos army to its vaunted Spanish tercios. Surrounding the Spanish, dEnghien pummeled them with artillery and launched four cavalry charges but was unable to break their formation. Two hours later, dEnghien offered the remaining Spanish terms of surrender similar to those given to a besieged garrison. These were accepted and the Spanish were permitted to depart the field with their colors and weapons. Aftermath The Battle of Rocroi cost dEnghien around 4,000 dead and wounded. Spanish losses were much higher with 7,000 dead and wounded as well as 8,000 captured. The French victory at Rocroi marked the first time the Spanish had been defeated in a major land battle in nearly a century. Though they had failed to crack, the battle also marked the beginning of the end for the Spanish tercio as a favored fighting formation. After Rocroi and the Battle of the Dunes (1658), armies began shifting to more linear formations. Selected Sources: The French Phase of the Thirty Years WarFrance and the Thirty Years War

Does Billy receive a fair trial Herman Melville Billy Budd Essay

Does Billy receive a fair trial Herman Melville Billy Budd - Essay Example The outcome of the trial goes to show how a composite plot, ably supported by ingenuity of narrative techniques, can be made analogous to a set of clandestine attributes of legal procedures. The thesis question to be resolved in this paper is whether Billy Budd receives a just trial or not, following the crime he commits after being charged with mutinous provocations. Judgment on the fate of Billy is legitimized per se by a number of factors that are ingrained in the protagonist’s characteristic features as well as in some external stimuli. Minkowitz argues that while Billy embodies ‘moral goodness and grace’ and is well liked among his colleagues, the ship’s master-at-arms John Claggart is ‘sinister’ (4). This perplexes the readers for they know who the culprit is according to the law. But mere understanding of the legal righteousness fails to provide an accurate picture of the author’s intentions. Captain Vere, for instance, is portrayed as a person of contradictory dispositions. He is stuck between the loftier ethics of law, which he is supposed to adhere to out of his professional responsibilities, and the apparent leniency of divine justice. He is the only person who knows that Billy is both clean-handed and guilty (Parker 37) and yet, he must convict Billy for his crime. It is apparent that the execution of Billy Budd symbolically represents a ‘justified animosity into a retributive righteousness’ (Melville 78). The question about whether Billy Budd receives justice or not is answered by Yannella: †¦Vere prejudges the case against Billy, uses irregular proceedings to convict him, and then executes him in a gross miscarriage of justice†¦Vere’s conservative rationale for hanging Billy, of course, is that it will silence and tame the sailors, who otherwise will take the captain’s inaction as a sign of weakness and an excuse to rebel (27-8). It is, therefore, quite clear that Billy Budd does not receive

Managing Organizational Change Term Paper Example | Topics and Well Written Essays - 2500 words

Managing Organizational Change - Term Paper Example It also offers a basis of evaluating the role of leadership and other change agent in the chance process (Kezar, 2001). An organization in the Financial/Banking Industry derives benefits due to roles played by people in the organization and their attitudes to the change process, especially in condition where there are cases of resistance. Nevertheless, this paper will focus on exploring the organizational change in the Financial/Banking Industry, through a description of management theory and system practices used in the organizations. Organization change is defines as a form of evolution that takes place though a life cycle, without which, the organization would not be able to develop or grow properly. Therefore, the growth calls for an organization to undergo a substantial change in different points of a development process. Influence of change is substantial to employees, organization and transformation, which is at the purpose of both employees and organization like a decision to terminate a section of business. However, the decision is at the best interests of the organization in their long-term objective, but consequences of that closure can have an adverse impact on employees involved, since they will be faced with problems of unemployment. In fact, the impact of the changes on the organization and employees, and the possible alternatives of dealing with the changes is a substantial issue that needs addressing. Background Organization change requires a change agent who refers to person that perpetrates the act or develops a process through which things in the organization become different (Shankar, 2013). For instance, a change occurs in situation, which members of an organization adapt or fail to adapt to dynamic environment, which is considered as a way of sustaining their competitive advantage through flexibility (Shankar, 2013). The role of being a change agent can be undertaken by a HR manager in an organization by implementing organizational change , through a demonstration unique versatility and wide range of skills (Stagl, 2011). The HR manager fostering change in the organization focuses on implementation or execution of activities that deal with employees’ behavior and attitude (Stagl, 2011). Therefore, as a change agent he or she focuses on identifying cues that impede change and the step that can be taken to eliminate these obstacles. There are other benefits that involve ability to forecast and identify need for change and this serves as a significant contributor that enables the organization to succeed and survive in adverse business environment (Kezar, 2001). Research techniques in the evaluation process offer a basis of applying literature critiquing teleological model, which are dominant model within the literature; in fact, they are evaluated in terms of their relevance for given forms of changes, which are proven by numerous studies (Shani, Pasmore & Woodman, 2011). Research techniques in the process of eva luating organization change offers recommendations on ways of challenging potential barriers to change, thereby setting principles that can be applied by leaders to establish a new

Fame and Glory in Dantes Divine Comedy Essay -- Divine Comedy Inferno

     Ã‚  Ã‚  Ã‚  Ã‚   "What is fame? Fame is but a slow decay   Even this shall pass away."   Theodore Tilton  Ã‚  Ã‚  Ã‚   The Divine Comedy, by Dante Alighieri, is a poem laden with such Christian themes as love, the search for happiness, and the desire to see God. Among these Christian themes, however, is Dante's obsession with and desire for fame, which seems to be a surprising departure from conventional medieval Christian morality. Indeed, as the poem progresses, a striking contradiction emerges. Dante the writer, in keeping with Christian doctrine, presents the desire for fame and glory among the souls of Inferno in order to replace it with humility among the souls of Purgatorio. Yet this purification of desire is not entirely embraced by Dante, who seems preoccupied with his own personal fame and glory. Therefore, how do we reconcile the seemingly hypocritical stance that the souls must strip themselves of pride and become humble, yet Dante can continue in h is quest for fame and glory and still be saved? This contradiction is developed as the reader and the character Dante travel through Inferno and Purgatorio and is resolved in the second sphere of Paradise. It is this sphere, which allows for fame and glory for honorable reasons, that permits us, as readers, to resolve this tension. It is in this sphere that Dante elucidates that fame is not always bad, but only becomes so when one's motives are impure.    The power of fame and glory is nowhere more powerful than among the souls of Inferno. The importance of earthly fame is particularly apparent in the figures of the several shades who have asked Dante to recall their names and stories on Earth. In fact, it is this promise of fame that induces most of the souls to ... ... of Paradise when we find that fame can have a place in paradise if it is sought for righteous reasons.    Works Cited Ciardi, John, trans. The Divine Comedy. In The Norton Anthology of World Masterpieces, Expanded Edition. Vol. I. Ed. Maynard Mack. New York: W.W. Norton, 1995. Works Consulted Bergin, Thomas Goddard. Dante. New York: Orion P, 1965. ---. Dante's Divine Comedy. Englewood Cliffs: Prentice, 1971. Niven, Larry and Pournelle, Jerry. Inferno. New York: Pocket Books,1976. MacAllister, Archibald T. Introduction. Inferno. By Dante. New York: Mentor, 1954. Pinsky, Robert. The Inferno of Dante. New York: Harper Collins, 1994. Shippey, T.A. "Into Hell and Out Again". Times Literary Supplement, 8 July 1977, .820. Spinrad, Norman. Introduction to Inferno, by Niven and Pournelle. Boston: Gregg Press, 1979.   

Role of Relationship Norms in Processing Brand Information Journal Article Review

The journal article, Role of Relationship Norms in Processing Brand Information by Pankaj Aggarwal and Sharmistha Law, two types of relationships are examined. The first is the communal relationship, â€Å"in which concern for a partner’s need is paramount† (Aggarwal & Law, 2005) and the exchange relationship in which â€Å"a matched benefit is expected back from the partner. This study explored the relationship between business partners as being an exchange relationship and family members and friends as communal. In the first study out of three, is about near versus far product extensions. To easily describe what is meant by this, the researchers compared a chair and furniture. A chair is easily accessed and has the greatest amount of feature-related information. Furniture is going from a specific item to a general level. The study was trying to show that depending on the context, consumers have been found to use product features at different levels of abstraction. The first hypothesis in the first study was, â€Å"Compared to a communal relationship, when the norms of an exchange relationship are salient people evaluate far extensions of a product poorly relative to near extensions† (Aggarwal & Law, 2005). The method for this study was using 64 undergraduate students for the 15 minute study. In the study they tested communal and exchange relationship norms purely as contextual constructs an examine their influence on a subsequent, unrelated decision test. Participants read a brief description of the interaction with another person intended to manipulate one of the two relationships. The exchange relationship scenario used phrases such as â€Å"keep things even,† â€Å"return favors as early as possible,† and â€Å"expect to reciprocate. † In the C. Cox Page 2 communal relationship, the phrases were â€Å"is there whenever they need her,† â€Å"does things to show she cares,† and â€Å"expects friends to be there for her†. Participants then had to answer an open-ended question that made them assume the role of the person described in the scenario and decide how to split a lunch bill with a friend. The result of this first study showed that the â€Å"norms of relationship moderate to the degree to which far product extensions are seen as similar to the original product, as revealed by the differences in the evaluations of the product extensions across communal and exchange relationships† (Aggarwal & Law, 2005). The findings suggest â€Å"the salience of communal relationship norms are more likely than exchange relationship norms to lead to brand information being processed at a higher level of abstraction† (Aggarwal & Law, 2005). The second study was about measuring memory for brand information at different levels of abstraction. The purpose of this study was to prove if people in both relationships were presented with abstract as well as more specific (or concrete) information about a brand, individuals in a communal relationship condition would encode the abstract information, whereas those in an exchange relationship would attend relatively more to the concrete brand information. The hypothesis for the second study is separated into three parts. The first is â€Å"relative to participants in the communal condition, those in the exchange condition will show higher recognition rates for correct concrete brand information and lower rates of acceptance of incorrect concrete brand information†, the second, â€Å"Relative to participants in the communal condition, those in the exchange condition would respond more slowly when correctly identifying abstract brand information†, and â€Å"Relative to participants in the communal condition, C. Cox Page 3 hose in the exchange condition would respond more slowly when identifying plausible inferences† (Aggarwal & Law, 2005). The study had 56 undergraduate students. Participants were presented with one of the two relationships, the same statements as the previous study and a 12-item questionnaire. Participants were asked to read a 450-word description about a hypothetical clothing store. The reading contained concrete and abstract brand information. After the reading and a filler exercise, the participants completed a multiple choice recognition test. The questions tested for memory for the concrete brand and abstract brand. The results of the second study showed that â€Å"participants in a communal condition, relative to those in an exchange condition, have faster access to both correct abstract brand information and plausible inferences, suggesting that they particularly attend to and elaborate on brand information presented at a higher level of abstraction. Participants in the exchange condition apparently needed to construct the abstract brand information be relying on their knowledge of concrete information. Together, these finding support the overall premise that brand-related information is processed at a broad overall level in a communal relation, compared to an exchange relationship in which it is processed at a more detailed and nitty-gritty level† (Aggarwal & Law, 2005). The third and final study was about generating brand features at different levels of abstraction. Study three’s hypothesis was, â€Å"Compared to consumers with an exchange relationship, those with a communal brand relationship will generate brand features at a higher level of abstraction† (Aggarwal & Law, 2005). C. Cox Page 4 One hundred and fourteen undergraduate students were used for the study. Students were asked to fill out a 15 minute paper and pencil study to act as a filler for an unrelated computer based study. Just like the first and second study, students were given a scenario to read. The difference between this study was that the scenarios described a relationship between a person and a product. After the students studied the person and product they filled out a questionnaire about the product and how the person related to it. Students were then asked to rate to the extent to which the brand was like a close friend, a family member, a business person or a merchant. The study showed that the number of words that it took to describe the product in the reading did not make a difference in the communal or exchange relationship. The study did, however, show, â€Å"the type of relationship with a brand in fact leads consumers to focus on different gestures that vary on their level of abstraction† (Aggarwal & Law, 2005). The perceived brand quality did not drive the results since the students were asked to compare it to people. The findings in study number three were the same as in the first two, but were different in context. The results of the whole study found â€Å"that when interacting with a brand, the type of consumer-brand relationship influence what information becomes salient. Hence, in an exchange relation, since the focus is on balancing the input and outcomes, people tend to focus on every detail which results in processing information at a lower level of abstraction. In a communal relationship, the focus is on satisfying the partner’s needs rather than the individual† (Aggarwal & Law, 2005). C. Cox Page 5 CRITIQUE Studying relationship norms in processing information about brands in the field of psychology enriches our understanding of consumer behavior by letting us know how people process brand information when they are in certain relationships. The relationship does not mean a marriage relationship, but rather if they are with a friend, family member, business person or just someone they barely know. This study was interesting because it let me know who are the people who factor the most into their brand relationships and who does not. The problems with this study are that the studies still need further investigation before everything can be fully understood. Boundaries are needed such as differences in brands to really understand how the process is being thought through. Also, the study did use a control group, it was not usually helpful within the study. The results found not difference in what was found previously. Time was also a factor that they did not seem to fit into the study. The study needed to find out if people in a communal relationship take a longer time to focus relative to those in the exchange relationship since the communal people are more concerned of others. The research in this study implies that people will think differently of brands depending in the relationship they are in. The processing time might be longer, shorter, faster or slower. The way of someone thinking about someone else is also a factor due to not thinking of themselves. Managers could use the information given in the study to show different brand features, or use a brand name for other products depending on the relationship. Pricing could also become an issue with relationships. Consumers in an exchange relationship might prefer itemized pay as you go methods while communal relationship people like it in a lump sum price. People could also figure out what type of relationship they have and how people look at them. Those people might C. Cox Page 6 be able to, in the long run, ensure continuous, smooth and more efficient interactions along with longer and more meaningful relationships. This study could be improved if they would have used a wider range of participants. Most undergraduate students would have a different view of a business relationship than someone who is actually in one. Also, everyone is everyones best friend at that age group so they may not appreciate the scenarios for the communal relationship. Although the study could have been called biased for those same reasons, it really was very fair and went smoothly. REFERENCE: Aggarwal, P, & Law, S. (2005). Role of relationship norms in processing brand information. Journal of Consumer Research, 32(3), Retrieved from http://search. ebscohost. com. www. libproxy. wvu. edu/login. aspx? direct=true&db=ufh&AN=19141303&site=ehost-live.

The Primary Client s And Fiduciary Relationships Essay

The person that a professional focuses their aid and attention to is the primary client. A primary client is defined as â€Å" a person who is fully aware that they are entering a fiduciary relationship with a professional. A primary client can go search for help on their own (voluntary), or be referred to one (involuntary) and should always be aware unless they are in an unconscious state or mentally unstable† (Shelby, 2016, Determining the Primary Client s and Fiduciary Relationships). Most of the time a primary client involves one person that is being helped by the professional, but in this dilemma it is Arturo and Marisol. Arturo and Marisol are considered the primary client because they went in search of marriage counseling together as a couple. When having a couple as the primary client, the professional must address the couple as a single client and help solve their marriage issue as a whole rather than separate individuals (Shelby, 2016, Determining the Primary Client) . If Carmen were to consider both of them as her primary clients, she would have a conflict of interest. In this case, she made the mistake of allowing an individual session with Arturo rather than keeping it as a couple session. As it is stated in The National Association of Social Workers (NASW), â€Å"Social workers’ primary responsibility is to promote the wellbeing of clients† (2014). Carmen must come up with a solution to help promote the wellbeing of the couple s marriage, but also Marisol’s health inShow MoreRelatedCase Study : Building Fine Custom Homes Essay1387 Words   |  6 Pagesmeeting schedules, and achieving high quality matter. This led us to the world of institutions and commercial building where fiduciary responsibility and the longevity of the structures we build is paramount. Today, KC Construction is a privately-held construction management firm focusing on building spaces that create positive and memorable experiences with our clients. 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After a scenario is selected the concept of the dual relationship is evaluated. In this evaluation the concept of dual relationshipsRead MoreQueen s School Of Business1476 Words   |  6 Pagesprofessional (in this case a consultant) where the regulator derives its authority from a provincial statute. In this problem, we are not concerned with whether Betty in fact breached the duty of confidentiality (by allegedly revealing the names of two clients and advertising in the local newspaper), but whether regulations should even be enforced against her. In this case, the first question to be asked is: Is CACP’s regulations constitutional or does it infringe Betty’s Charter right to freedom of expressionRead MoreEthics : Ethical And E thical Dilemmas1473 Words   |  6 Pagesis the process to include the client in making your decisions? In what way or ways is accountability for the APA Ethics Code important for decision-making? As well as evaluate a model of ethical decision-making based on six basic moral principles: autonomy, no maleficence, beneficence, justice, fidelity, and veracity. Finally in closing, discuss the importance of each of these to ethical decision-making. Introduction I chose the case scenario of the client Kevin’s inability to pay for services;Read MoreA Summary On Good Faith Essay1058 Words   |  5 PagesConclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 6.0 References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 7.0 Appendix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 1. Introduction: With the word Good Faith which means an earnest intention to deal justly with others in any relationship be it business or any new venture. It is derived from the Latin idiom bona fide, and courts use the two terms interchangeably. Good faith is an intangible and inclusive term that encompasses a genuine sincerity or purpose without any wickednessRead MoreOperations Management Non Profit Organization2143 Words   |  9 Pagesforward. (b) The specific issues would be various due to different standards and analysis techniques which applied to strategic planning. However, generally it is critical to cover these aspects as follows. Identifying the nonprofit organization s direction and mission. What’s the reason of the organizations exist? What do the organizations try to accomplish? How do the organizations to do to achieve their goals? What are the organization’s guiding principles? Evaluating the Internal and