Business Research & Analysis Plan For Market Readiness for Electric Paper

Business & Analysis Plan For Market Readiness for Electric Pick-up Truck for Ford Motor Company - Research Paper Example Hence, to be on the safe side, a company ought to become dynamic by ensuring that it moves alongside the changes as they come (LaPlaca & Frank, 2011). Ford is one of the most recognized companies when it comes to the issue of automobile production. The company has been in existence for decades; hence, it has a global recognition since its brand quite reputable. However, the emergences of new automobile companies such as Nissan, Toyota and Chevrolet have been quite a challenge since they have resulted to stiff competition. For instance, Nissan was the first company to come up with the idea of inventing electric vehicles. Ever since, the automobile business has been a buzz whereby each company is striving to come up with the best electric vehicle in a move to attract more clients (Sandalow, 2009). Due to the stiff competition, Ford Company is also competing to retain its lost glory. The company is in preparation of unveiling its first electric version of the F-150 truck (Goreham, 2014). Although this is a good move for the company, there are a number of factors worth considering before the company unveils the electric version of F-150 truck. The company should first perform a market analysis in a move to determine whether the product will receive more sales or not. Although the company usually makes a number of sales on its products, this will not be the case if the company produces an electric vehicle before considering some vital aspects such as the market challenges. Studies show that the electric vehicles are still not as popular as those that depend rely of gas (Bigman, 2012). This is because to date, it is easier to locate a gas station than it is to find an electric charging station. It is therefore evident that most people will not purchase the electric vehicle since they will have problems when it comes to recharging. It is therefore essential that before the company unveils its new product, it should ensure that it first addresses

Modern pricing models Essay Example | Topics and Well Written Essays - 250 words - 1

Modern pricing models - Essay Example Some of the shortcomings experienced with the Black-Scholes model were strike-price bias and return skewness. Consequently, the development of the Heston model came in as the best alternative tool for the purposes of advanced investments (Gilli, Maringer & Schumann 2011, p.257). As any other stochastic volatility model, the Heston model utilizes statistical methods when making calculations or forecasts of the various pricing options in consideration. As such, it also bases on the assumption that the underlying security or trading option has an arbitrary volatility. Therefore, the Heston model falls among the various different models of stochastic volatility such as the GARCH model, the Chen model, as well as the SABR model. Consequently, the Heston Model also falls under the standard smile model category, with â€Å"smile† in this concept referring to the volatility smile. A volatility smile is a graphical representation of various options that have identical expiration date expressing an increasing volatility. This increase in volatility arises often arises when the options become more out of the money or in the money. The concave shape generated by the graph is what gives rise to the name, the smiles model, as it appears like a smile (Wang 2007, p. 3). The Heston Model applies mathematical calculations in describing the process of evolution in volatility that an underlying asset undergoes under the stochastic volatility options. As such, just as other statistical models mentioned above, the Heston Model equally has a number of assumptions, such as the volatility of an asset not being constant, or deterministic, but rather following a random process. Some the of the basic assumptions of the Heston Model is that the stochastic process determines the asset price, St In addition, forms part of the Wiener Process as experienced under the GBM (Geometric Brownian Motion) also considered