Theorems on Shear-Free Perfect Fluids with Their Newtonian Analogues

In this paper we provide fully covariant proofs of some theorems on shear-free perfect fluids. In particular, we explicitly show that any shear-free perfect fluid with the acceleration proportional to the vorticity vector (including the simpler case of vanishing acceleration) must be either non-expanding or non-rotating. We also show that these results are not necessarily true in the Newtonian case, and present an explicit comparison of shear-free dust in Newtonian and relativistic theories in order to see where and why the differences appear.     

Pricing vulnerable European options with stochastic default barriers

CF Lo and KC Ku Institute of Theoretical Physics and Department of Physics, The Chinese University of Hong Kong, Shatin, Hong Kong, China Email: cho-hoi_hui{at}hkma.gov.hk Received on 31 July 2006. Accepted on 15 March 2007. This paper develops a valuation model of European options incorporatinga stochastic default barrier, which extends a constant defaultbarrier proposed in the Hull–White model. The defaultbarrier is considered as an option writer's liability. Closed-formsolutions of vulnerable European option values based on themodel are derived to study the impact of the stochastic defaultbarriers on option values. The numerical results show that negativecorrelation between the firm values and the stochastic defaultbarriers of option writers gives material reductions in optionvalues where the options are written by firms with leverageratios corresponding to BBB or BB ratings.     

On the existence of conically self-similar free-vortex solutions to the Navier-Stokes equations

In this paper a proof of existence and non-existence of theconically self-similar free-vortex solutions to the Navier-Stokesequations, originally found by Yih et al. (1982, Phys. Fluids.25, 2147-2158), is presented. This proof clearly establishesthat these solutions do not have any kind of singularity atthe symmetry axis. This analysis gives considerably improvedexistence and non-existence bounds and it is shown that thesebounds are close to optimal in the low-swirling limit. Thisapproach links the questions of existence and non-existencefor the swirling case and for the non-swirling case. The proof,which is an extension of techniques developed by Serrin (1972,Phil. Trans. R. Soc. Lond. 271, 325-360), is based on Schauder'sFixed Point Theorem and is, therefore, non-constructive. Therefore,the paper ends with a brief discussion of the question of howto compute the conically self-similar free-vortex solutionsto the Navier-Stokes equations.     

String inspired brane world cosmology

We consider brane world scenarios including the leading correction to the Einstein-Hilbert action suggested by superstring theory, the Gauss-Bonnet term. We obtain and study the complete set of equations governing the cosmological dynamics. We find they have the same form as those in Randall-Sundrum scenarios but with time-varying four-dimensional gravitational and cosmological constants. By studying the bulk geometry we show that this variation is produced by bulk curvature terms parametrized by the mass of a black hole. Finally, we show there is a coupling between these curvature terms and matter that can be relevant for early universe cosmology.