|Journal of Contemporary Issues in Business Research ISSN 2305-8277|
Author(s): Dennis Elam
Abstract:This is a book review of Ed Carlson’s second volume, George Lindsay’s An Aid to Timing, Annotated Edition. It is a reproduction of some of the technical theories of George Lindsay. Carlson divides Lindsay’s monograph An Aid to Timing into three chapters. An additional three chapters explain the broader concepts of Lindsay’s technique and offer sample analysis. Lindsay’s technique attempts to locate market highs and lows employs a timing technique rather than price movements themselves. As most technical theories rely on price, this approach, given the number of supporting examples, merits consideration.
[Compelete Article-pdf] [pp: 37-38] Article first published online: 1st March 2013
Author(s): Snorre Lindset
Abstract:In this note we analyze the pricing error of using the cost-of-carry formula to determine futures prices. When the underlying asset is a share of stock, the sign of the pricing error is basically determined by the sign of the correlation between the stock return and short-term risk-free interest rate. When the underlying asset is a zero-coupon bond, the forward price is an upper bound for the pricing error.
Keywords: Cost-of-carry formula, forward prices, futures prices, pricing error.
[Compelete Article-pdf] [pp: 39-43] Article first published online: 1st March 2013
Author(s): Muhammad Md Husin
Abstract:This paper aims to measure whether the efficiency of monetary policy transmission for Islamic banks is affected in the light of systemically more important Islamic financial system in the Malaysia. Focus will be centred on the pace and magnitude of the transmission via profit rate channel for Islamic banks against interest rates channel of conventional banks. The paper relies on the Vector Auto Regression (VAR) methodology, focusing on the period from January 2000 to December 2012. The results show that the pass-through impact via profit channel of Islamic banks is still high and sizable. However, deteriorating signs can be sensed as Islamic banks become more systematically important in the financial system. Result of this study could justify new approach and strategy for monetary policy formulation and implementation in Malaysia. There were already a number of studies being done to measure the monetary policy transmission for Islamic banks in Malaysia and these studies in general proved that Islamic banks are the important conduit for channelling the monetary policy impacts. In contrast, this study seeks to measure how more systematically important Islamic banks could post a threat to the overall efficiency of monetary policy transmission, hence justifying new monetary policy approach.
Keywords: Monetary policy transmission, Islamic banks, VAR, profit rate channel, pass through impact.
[Compelete Article-pdf] [pp: 44-55] Article first published online: 1st March 2013