Multigrid for American option pricing with stochastic volatility

The paper describes an implicit finite difference approach to the pricing of American options on assets with a stochastic volatility. A multigrid procedure is described for the fast iterative solution of the discrete linear complementarity problems that result. The accuracy and performance of this approach is improved considerably by a strike-price related analytic transformation of asset prices and adaptive time-stepping.

[Book Review] A database of North American tertiary mammals

Review of: Janis, C.M., Scott, K.M., & Jacobs, L.L. (eds.) 1998. Evolution of Tertiary Mammals of North America Volume 1: Terrestrial Carnivores, Ungulates, and Ungulatelike Mammals, i-x, 1491. Cambridge University Press, Cambridge, UK. £165

Family, community and politics: the fertile legacy of Michael Young

The Institute of Community Studies was set up by Michael Young in order to carry out research on politically relevant social issues, in a context free from direct political control. A research method was devised for it whereby researchers made their own values and objectives very explicit, while staying as close as possible in their reports to the concerns and language of respondents themselves. This method has often been criticized by professional sociologists: but it reflects quite well the nature of social knowledge. It has produced reports which help to increase public understanding of social processes, and provide useful guidance to policy makers. Professional sociology on the other hand has tried to develop a rigorously value-free method. As a result, though, it often seems to be tied implicitly to values shared among researchers but not more universally. Arguably this makes it harder for the general public to understand, and accept, its findings.