Homeland Security - Response & Recovery Essay Example | Topics and Well Written Essays - 2000 words

Homeland Security - Response & Recovery - Essay Example a system in the sense that it consist of a number of independent elements that must work together to achieve common outputs – such as rapid alleviation of suffering by the victims of a natural disaster, industrial accident or terrorist attack† (p.1). Thus, he mentioned of three essential independent elements: namely the private sectors like Red Cross; state and local agencies; and federal agencies should coordinate and collaborate with each other to achieve the desired result which is to have a more efficient and effective disaster response programs. There were scenarios before in United States of America in which the Federal government only aids local states in financial matters alone (p.2) and in which Miskel mentioned that in a typical disaster, the government plays no operational role –a meaning they just support them in terms of money reimbursement (p3). Therefore, the first thing that the primary elements should do first is to coordinate with one another. Th e three major elements (private sectors, state and local government, and federal government) must contribute and work together to achieve a better result and achieve the goals of quick-reducing suffering from timely and effective coordination. The National response system (NRS), under the Federal government, endorses this so-call Incident Command System (ICS) or Unified Command (UC) as an effective tool of managing all emergency response of incidents for multi-jurisdictional situation. This brings together local government, the federal government and the Responsible Party (RP) in coordination to retort in oil spills and/or other harmful chemical substances that can endanger to the lives of its constituents. Aside from this, they should implement programs that will aid the citizens in times of calamities or disasters. The Community Emergency Response Team (CERT) Program, under the Federal Emergency Management Agency (FEMA) is a tool in helping the people through its advocacy in givin g seminars and education to prepare themselves whenever unexpected things happened. â€Å"It educates people about disaster preparedness for hazards that may impact heir area and trains them in basic disaster response skills, such as fire safety, light search and rescue, team organization, and disaster medical operations.† (CERT’s official website article). So, government should also seek for people empowerment as one of the effective tool to achieve success especially in large, multi-agency and multi-jurisdictional society, thus, we must always put in mind that we are not always there when accidents happen. Thus, it is also safe to ensure that the people themselves could help themselves. Under our law, there two main agencies that are in-charge of management disaster control namely: the Federal Emergency Management Agency (FEMA) under the Executive cabinet of Department of Homeland Security (DHS); and the Center for Excellence in Disaster Management and Humanitarian A ssistance (COE) that was established by the US Congress. In line with the DHS, the Citizens Corps (a voluntary organization) seeks to mitigate disaster and prepare the population for emergency response through public education, training, and outreach. What our state do is to give seminars and actual-case demo to at least make our citizen prepare when an unexpected things occurs. We target the youngsters in schools and teach them what they would do in times of calamities. An example would be earthquake drills, first aids and alike. We target class rooms and young people

Option Pricing Theory Essay Example | Topics and Well Written Essays - 2000 words

Option Pricing Theory - Essay Example An option provides the buyer the right to buy or sale the quantity of goods he or she wants at a fixed price known as the strike price. Since the process of buying an option is optional, the holder can choose not to buy or sale the assets. There are two options these are; right to buy and right to sale. Options can come in several varieties like; a put option, gives the seller an underlying price to sale an option (Bostock, 2004). A call option gives its holder the right to buy an option on its set price; these options depend on when the option is offered. Therefore, the paper aims at giving a theoretical analysis of option pricing theory. 2.2 Research questions The paper focuses on two main research questions; to determine the effects of option pricing theory and to explore ways of improving option pricing theory. 2.3 Significance of the research The research targets businessmen who take part in buying and selling of options using the option pricing theories. The research findings w ill provide them with the basis of calculating option prices. The study mainly delimits itself to the two option pricing theories (Black-Scholes model and binomial pricing option models). ... Broadie and Detemple (2000) in their research provided a suggestion that binomial models are modified by replacing the binomial prices with the tree diagram analysis using the the Black-Scholes values, or by making it easy to payoff stocks at maturity, and the other option prices as usual. The major disadvantages of this model is that the option price converges; a result of changes that may take place in the prices. In order to obtain solutions that are exact, the Standard Richardson extrapolation may be applied . Burn (2003) states that, although the option pricing models were used. their patterns of convergent and rate of convergence for calculating the option ratios are not well described. Hull method and extended model can be used to come up with monotonic convergence using as the formula for coming up with deltas and gammas and deltas in this model.He adds that the models can be improved by introducing a more advanced formula, to improve the computation of the hedge ratios while calculation option pricing. The Central Limit Theorem, states that, the actual distribution of prices under the Black-Scholes model converges to its continuous-time limit. For instance, the price distribution of the model converges to a lognormal distribution. Similarly, binomial option prices calculated also converge to the Black-Scholes price. . N-Cumulative Standard normal distribution function r- rate of return (risk free) T-time (up to expiry in years) S-current stock price o- volatility of stock q- strike price Broadie and Detemple (2000) in their evaluation suggested for a binomial model called Binomial Black and Scholes model to price options. This model is identical to the Cox, Ross and Rubinsten (CRR) model apart from