Web Server Application Attacks Assignment Example | Topics and Well Written Essays - 750 words

Web Server Application Attacks - Assignment Example This keeps the web application safe from malicious user inputs. Session Security Vulnerabilities. When session ID’s are sequential and persistent or when session tokens are not protected, one user may access another user’s data through assuming the other user’s identity. To mitigate this, session ID’s must be random and must expire when a user logs out of the session. Session tokens must be protected and invalidated when the user logs out. 3. Authentication Vulnerabilities When server does not authenticate a user before giving him access to a web application, he may gain access to sensitive information and mishandle it. To counter this problem, the user must apply authentication rules like HTTPS. User must ask for authentication after specified intervals. Access control must also be implemented. Part 2 Protecting Web Servers from Denial of Service (DoS) Attacks Denial of Service (DoS) attacks prevent web servers from serving websites to genuine users. These attacks are, mostly, targeted toward professional websites run by political or other important organizations, in order to hinder their web presence to their clients and users (AppliCure Technologies, 2013). However, small businesses are also not free of such threats. The websites cease to operate partially or fully. A DoS intrusion detection architectural design is a must-use in order to prevent such attacks. Mell, Marks & McLarnon (2000) have discussed this architecture in their article, in which intrusion detection software (IDS) components are hidden from the attacker. In case the attack is successful, IDS components are shifted from the attacked host to functional host, where they counter with the attack successfully. This is done by by using mobile agent technology and network topology features. The communication bet ween various IDS components is also restricted (Mell, Marks & McLarnon, 2000). Part 3 a. Basic motivation behind the attack on the Justice Department, as hackers themselves stated, was that they wanted to â€Å"release government data† (Zabarenko, 2013, para.1). They were also outraged over the death of the late computer prodigy Aaron Swartz, who had committed suicide on January 11 this year. He had been facing trial for stealing millions of online JSTOR articles. b. I would have used Ping of Death, as it is a dummy ICMP packet receiving fragments of ping, and resembles the real packet. It becomes too big for the buffer once reassembled, which starts overflowing, and thus, the system hangs (Canavan, 2001, p.39). I would use this because there are freely available source code examples on the internet for Unix to create large ping packets. It is very easy to ditch the user through fake ping packet. c. Web server application attacks are not as easy as they may seem, because ther e are many different kinds of anti-virus softwares, intrusion detection softwares, and user input detection and encoding softwares that are being implemented nowadays. These special softwares make it very hard for the attackers to succeed in their attacks. Part 4 To maintain a secure web presence, Federal government organizations need to maintain special mitigation strategies. Designing an information security policy is the first step towards the implementation of information security (Danchev 3). A security policy acts as a centralized crucial document that will help in eliminating the risk of security breaches by securing the confidential information stores from getting disclosed to unauthorized persons. It defines the importance of a

Diabetes management Essay Example | Topics and Well Written Essays - 3500 words

Diabetes management - Essay Example lood glucose monitoring, oral and insulin therapies, Furthermore, the essay examines the role of multidisciplinary teams in offering patient-centered diabetic care and patients with such conditions. Lastly, the paper has critically detailed the physical, psycho-social and cultural impact of diabetes on clients and their families. The essay incorporates a case study of type 2 diabetic patient with pressure ulcers in his diabetic feet and associated conditions such as unitary and bowel incontinence, but has not adequate knowledge of management and care of his diabetic feet. The essay has adhered with ethical conduct of Nurses and Midwifes since the identity of the patient has been altered to John in order to protect confidential medical information of the client. The case study has been included in the appendix. Anderson and Rubin (2000) agree with Edmonds (2013) that diabetes results from several biological, environmental and lifestyle factors that lead to abnormal metabolism and hyperglycemia. Foster and Edmonds (2013) conquers with Cheyette (2005) that diabetes is a life-long condition that is associated with high glucose in the blood since the pancreas is incapable of producing enough insulin that is essential in regulating the blood sugar levels. I agree with Cheyette (2005) that John is experiencing high sugar levels due to inability to produce enough insulin. As Anderson and Rubin (2000) have outlined, insulin initiates the signal transduction whereby the glucose will enter the bloodstream for it to be stored as energy in the muscles or converted to fat by the liver. Tuomi (2005) confirms that insulin signals the liver to convert glucose to glycogen in case the body has sufficient energy. From the analysis, I believe insufficient of insulin affects metabolism processes in the body of John. The Health Commission (2007) explains that some critical pathophysiological aspects of type 2 diabetes include impaired secretion of insulin and increased body resistance

Environmental Ethical Issues Essay Example for Free

Environmental Ethical Issues Essay Contemporary environmental ethics emerged as an academic discipline in the 1970’s, as nature was the focus of much of the nineteenth and twentieth century philosophy. † In the past thirty years society started the questioning and thinking of the relationship of human beings with the natural environment. This reflected an already widespread perception in the 1960’s that the twentieth century faced a population time bomb and a serious environmental crisis. The commercial farming practices impacted environmental and public health concerns. The chemicals used in farming on the crops are harmful and could cause health problems for society. This is an ethical issue when they know that harm can humans but making a profit comes first. On the other hand we now know that they are harmful and the government is trying to regulate the chemicals used. I believe it works in some instances but not with everyone. Discovered in 1968, by Stanford ecologist, Paul Eehrlich, warned that the growth of human population and viability of planetary life support systems are in trouble. Pollution is due to the overuse of our capacities. The government attempts to reach a common ground and change how areas are populated. They regulate what we build and how far apart we can. They also make wildlife preserves to protect animals from extension. They also make sure that protected trees are left and they also keep certain animal species protected. They are seeing the over population and starting to see that we need to do to keep our population free of overpopulation. In the past our society either turned a deaf eye or did not exactly know the consequences of what was happening in society. If we keep the idea and ethics in the environment we will make a huge change in society. Animal rights activist are concerned about the rights of animals. I do believe that animals should have rights to but I also feel that in rats and other rodents we need testing to help save some lives. If we did not use them then we would not find cures for cancer, aids and many other life threatening diseases. If we do not use animals then what do we use? In the past this was not a concern because it did not raise such an environmental ethical issue. Today we know more and many more people are concerned of what happens to them and why we are using animals. I feel that we should use animals instead of humans. Humans are also used in studies and things happen to them just like animals. I feel that this is not ethical. I know that sometimes they use a placebo and then a drug that could save a persons life. What if you were the one that got the placebo? Would that make you and your family feel good knowing that something could have saved your life? I was personally involved in an environmental ethical issue where I lived. It was a highly published case that really caused a lot of controversy in the news and with society. I lived off of Marlee, which was about a mile away from the area of contamination. The government did know that the chemicals were being dumped and covered up. After many years of covering it up, it came out in the news. It kind of reminded me of the movie with Julia Roberts Erin Brocovitch. Everyone was located and had meetings to discuss the health problems that the people that grew up along there had been experiencing. Myself being one of them, having cysts on my ovaries at 9 years of age. I knew so many people who died from cancer at an early age. I was friends with many people who had miscarriages. It was very bad time in our lives and devastating that the people had to suffer because someone wanted to save money. I can promise you one thing that the company paid a lot more after the fact then they would have if they disposed of the waste properly. I know that the peoples life expectancy in the neighborhood I lived in I only about 50-60 which is rater young. If our society would all do there part and not expect that is will just change itself we will live in an environmental ethical society. The new saying is† think green† and I have even been making sure not to print something unless absolutely needed. It is going to take an effort on al people not just some to change our society and make it a more environmental ethical place to live. Ruggiero, V. R. , (2008). Thinking critically about ethical issues. McGraw Hill. Boston.

Obesity and Self-Esteem Essay -- essays research papers fc

Today obesity is talked about as a major physical health problem. It can cause diabetes, high blood pressure, heart disease, immobilization, and many other problems. However many articles fail to mention what is one of the most important and most destructive problems. This is the effect of obesity on one’s mental health and wellbeing. Being excessively overweight usually instills in it’s victims a sense of self worthlessness and gives them a very negative self-image. This can lead to an array of problems that affect the person in a way that is much more direct and difficult to deal with than physical problems. While the problem is known to affect men, it strikes women much more often. The models and celebrities in the media that set the standard for what women should look like are thinner than 90-95 percent of the American female population (Seid p.6). This is an unrealistic portrayal of what the human body should look like when compared to most women’s genetic makeup. Women’s self-image, their social and economic success, and even their survival can still be determined largely by their beauty (Seid p.5). Men on the other hand seem to have it a little easier when it comes to looks. Their self-image is largely determined by what they accomplish in life and not by whether or not they meet the social standard for looks. Modern clothing and fashion require women to show off their bodies more in tight clothes and by showing more skin than in the past. According to Roberta Seid ...

Of mice and men curley’s wife Essay

Of Mice and Men is a microism of 1930s American society. Following the 1929 Wall Street Crash,, America went into the Great Depression, which lead many Americans to realise that the American Dream was never really possible. We see Curley’s Wife as a representation of women in America at that time. John Steinbeck’s novella of Mice and Men set in rural California during the Great Depression centres the friendship of two itinerant ranch workers: George Milton and Lennie Small. On arrival at their new employment, George and Lennie meet Curley’s Wife – the flirtatious; pretty; lonely young wife of the Boss’ son, Curley. Many people would argue that yes Curley’s Wife was a victim, for reasons being: she was forever lonely and unable to talk to other members of the ranch. â€Å"Why can’t I talk to you? I never get to talk to nobody. I get awful lonely. † This proves Curley’s Wife is an outsider like Crooks who is lonely-she just wants somebody to talk to. This picks up the theme of loneliness in the 1930s American society; Curley’s Wife is not happy living in her father-in-law’s ranch. She thinks she has missed opportunities by marrying Curley and living with his band of lonely men. She tries to get a bit of companionship by flirting with them and talking to them. Moreover, as she is the only woman on the ranch Steinbeck has portrayed as all women would have been seen in the 1930s American society – a sexual object. â€Å"Well, that glove’s fulla Vaseline. † This shows the readers that Curley is only interested in his wife for the sex. â€Å"Well – she got the eye. † This is showing the readers that she has accepted her role as an object of desirable sex. She has been brought into the stereotype that men have women. She could possibly be missing friendship as she is the only women on the ranch. Ultimately, we are invited by Steinbeck to believe that Curley’s Wife is a victim of society at that time. This is because, eventually she is killed. â€Å"her body flopped like a fish. And then she was still, for Lennie had broken her neck. † This shows she was as helpless as a fish; the use of the simile emphasizes the helplessness she possessed. Furthermore, it also shows how powerless she was as with her name, she and Candy’s dog echo each other, in the sense they both have no names; they are merely, a possession to be owned, an object. Before and after Curley’s Wife dies we begin to see another side of her, a side just longing for freedom, to be loved, to live the big American Dream. â€Å"She was very pretty and simple, and her face was sweet and young. Now her rouged checks and her reddened lips made her seem alive and sleeping very lightly. The curls, tiny sausages, were spread on the hay behind her head, and her kips were parted. † This shows the readers that all along Curley’s Wife was a natural beauty behind all the heavy make-up and redness. She has transformed into a beauty by death; she seems to have become an angel. Finally she has found what she has ultimately been looking for: peace and freedom away from her abusive husband and rash mother. However, aside from all this, many people would still see her as not a victim. This is because, she is always described as dressed in red. â€Å"Both men glanced up, for the rectangle of sunshine in the doorway was cut off. A girl was standing there looking in. she had full rouged lips and wide-spaced eyes, heavily made up. Her fingernails were red. Her hair hung in little rolled clusters, like sausages. She wore a cotton dress and red mules, on the insteps of which were little bouquets of red ostrich feathers. † Curley’s Wife is blocking the sunlight. This foreshadows her being involved in a crucial part of the novel. It also forebodes bad happenings involving darkness. Furthermore, the repetition of ‘red’ shows she is devilished, lustful and seductive, it also has connotations of danger, foreshadowing danger in the near future involving her. In addition, ‘red’ i. e. ‘scarlet women’ indicated loose morals. Moreover, Curley’s Wife appears as though craving for attention. The make up and high heels seen very inappropriate for a ranch life even for a woman. Furthermore, Curley’s Wife uses sexuality to draw attention to herself. â€Å"She put her hands behind her back and leaned against the door frame so that her body was thrown forward. † This shows the readers she is a seductive woman who will do anything to get the attention of men. Steinbeck has again used Curley’s Wife to portray the way in which all women were portrayed as in 1930s America – an object of sexual desire. Moreover, it is also showing, that Curley’s Wife has fully taken on the stereotype of a women only being a sex object be doing so. It also suggests she is very promiscuous -she flirts and uses her sexuality and desirability to get want she wants or rather what she is not getting right now from Curley. What is more, all the readers are fully aware of Lennie’s strength and childlike behaviour; however Curley’s Wife tries to impress him as he is the only one on the ranch that will talk to her. â€Å"She looked up at Lennie, and she made a small grand gesture with her arm to show that she could act. The fingers trailed after her leading wrist, and her little finger stuck out grandly from the rest. † She tries to draw attention to herself by trying to impress Lennie as her is the only person on the ranch who will talk to her as everybody else is fully aware of what Curley is capable of doing. She wants Lennie to notice her because she knows he is too dumb to say anything to Curley about her talking to other men. Furthermore, many readers would argue she was playing with fire by going after Lennie as he is so strong and powerful and this is backed up when she ironically gets killed by Lennie. To conclude, Curley’s Wife is seen by men as a strong, powerful woman who cannot be abused, however many would argue she was being sexually abused by Curley. At the same time, all the characters in Of Mice and Men are victims; they all have the big American Dream that never really takes place. In my opinion, Curley’s Wife is both a victim and a culprit; this is because, towards the beginning of the novella, she is portrayed as a prostitute, danger to be around, however towards the end, we begin to see that all she has ever wanted is the big American Dream. As she is killed at the end, we again see how she is an innocent women longing for freedom and companionship from someone. – 1 – Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE John Steinbeck section.

History And Physical. M. J., 46 Y.O. Black Female Arrived

HISTORY AND PHYSICAL M. J., 46 y.o. black female arrived at emergency department via ambulance with complaint of left upper extremity weakness and headache. She is awake, alert and in no acute distress and is a reliable historian. SUBJECTIVE Chief complaint: â€Å"I have a bad headache and I could not move my left arm but it’s getting better.† History of present illness: Patient was at work and developed sudden onset numbness and weakness in the left arm and headache pain described as â€Å"dull and throbbing.† Pain is 8/10 on pain scale. She denies nausea and vomiting. Patient reports she has occasional headaches, which she treat with Tylenol or Motrin, but this is the first time she experienced numbness†¦show more content†¦Patient reports occasional headaches. She denies head trauma. Eyes: PERRLA, pupils 3 mm, last eye exam 2 years ago. Ears: Hearing intact, ear canals patent, no drainage Nose: Nostrils patent, no drainage, sinuses clear. Mouth/Throat: Oral mucosa pink and moist, positive swallow and gag reflex. Neck: Neck symmetrical, active range of motion, no masses. Breasts: Breasts symmetrical, no masses, no dimpling. Patient reports BSE performed monthly. Lymph Nodes: Lymph nodes nonpalpable, nontender. Respiratory: Lungs clear to auscultation, on room air. Infrequent, nonproductive cough. Cardiac: Regular heart rate and rhythm, +2 radial pulses, +2 pedal pulses, + capillary refill 3 sec, no edema. Gastrointestinal: Abdomen soft, non-tender, + bowel sounds in all quadrants, regular diet, last bowel movement prior to admission. Genitourinary: Patient voids without difficulty and reports regular menses. LMP 2 weeks ago. Musculoskeletal: Moves all extremeties, LUE slighly weaker than RUE Neurologic: Patient is alert and oriented x 4. She is calm and cooperative. Speech is clear and spontaneous. No facial droop, tongue midline. Numbness in LUE has resolved since admission. Laboratory and diagnostic examinations: EKG Echocardiogram CT Head CTA Neck CBC Chem 10 ASSESSMENT †¢ Headache and left arm numbness/weakness Abnormal data: electrolyte imbalance, elevated BP, CTA shows 50% stenosis right carotid artery. †¢ Elevated BP Abnormal

Actual market behavior - Free Essay Example

Sample details Pages: 10 Words: 3059 Downloads: 5 Date added: 2017/06/26 Category Economics Essay Type Research paper Did you like this example? An Option Pricing Model: Theory, Model Empirical Test Abstract A simple option pricing model based on correlation of underlying stock with actual market behavior as reflected by market index. The simplicity and ease of the model may appeal to the traders, operators and other market participants. Option prices produced by the proposed model are close to the actual price for all range of strike prices. The simplicity and precision of the proposed model are its main advantages over the existing models. Introduction Options belong to a class of instruments referred to as ‘Derivatives because they derive their value from an underlying commodity or financial assets. By definition, â€Å"derivative is a contract or an agreement for exchange of payments, whose value derives from the value of an underlying asset or underlying reference rates or indices†. Price of a derivative instrument is contingent on the value of its underlying asset. The underlying commodities and financial assets can range from products like wheat and cotton to precious items like gold, silver, petroleum and financial assets like stocks, bonds and currencies. Options have richer history. Forward contract dated back to Mesopotamian tablets (1750 B.C.). Organized exchanges began trading option on equities in 1973. An Option means a choice. An option in a financial market is created through a financial contract. This financial contract gives a right to its holder to enter into a trade at or before a future specifi ed date. The underlying assets on options include stocks, stock indices, foreign currencies, debt instruments, and commodities and futures contracts. These are called stock options, index options, commodity options and futures options. An option provides a downside protection against risk and also an upside benefit from movements in the underlying asset prices. An option is a contract in which the seller of the contract grants the buyer, the right to purchase from the seller a designated instrument or an asset a specific price which is agreed upon at the time of entering into contract. Option buyer has the right but not an obligation to buy or sell. If the writer gives the buyer of the option the right to purchase from him the underlying assets, it is call option. If the writer gives the buyer of the option the right to sell the underlying asset, the contract is termed as put option. At the time of introducing an option contract, the exchange specifies the period during which the option can be traded or exercised, the period is termed as Expiration period and date at which contract matures is Exercise date. The price at which the underlying asset may be bought or sold is exercise or strike price. Option premium or option price is the amount which the buyer of the option, whether it be a call or put has to pay to the option writer. Intrinsic value of an option is the value of the profits that are likely from the option. The difference between the option premium and intrinsic value is referred as time value. An option whose exercise price is equal to current spot price is said to be at-the-money. A call option is in-the-money when the strike price is below the current spot price of the underlying asset. A put option is in-the-money where the strike price is above the current spot price of the underlying asset. A call option is said to be out-of-the-money when the strike price is above the spot price of the underlying asset. Put option is said to be out-of- the money when the strike price is below the current spot price of the underlying asset. There are two kinds of options—American options and European options. American option can be exercised any time before its expiration date while the European can only be exercised on its expiration date. Trading and pricing of stock options have occupied dominant place in derivative market. Numerous pricing models have been developed, studied and tested. The Black-Scholes model is an option valuation model and it provides a closed form analytical expression for valuation of European style options. It is an option valuation model not a theorem. The model is developed based on assumptions and there are limitations with any such model. When the assumptions of the model are relaxed, discrepancy occurs. According to John C Hull â€Å"An option pricing model is no more than a tool used by traders for understanding the volatility environment and for pricing illiquid securities consistently w ith the market prices of actively traded securities. If traders stopped using Black-Scholes and switched to another plausible model—the prices quoted in the market would not change appreciably†. Don’t waste time! Our writers will create an original "Actual market behavior" essay for you Create order Review Of Literature Mandelbrot(1963) observed that the asset prices returns are highly leptokurtic. Numbers of studies were conducted to test the Black-Scholes model and other pricing models. Latane and Rendleman(1976) observed that out-of-money put options are generally overpriced in the market. Macbeth and Merville(1979) found that implied volatilities tended to be relatively high for in-the-money options and relatively low for the out-of-the-money options. A high implied volatility is indicative of a relatively high option price and low implied volatility is a low option price. Rubinstein(1985) in his study on trades reported on Chicago Board Option Exchange during the period 1976 to 1978 found that for out-of-the-money options, short maturity options had significantly higher implied volatilities than long maturity options. Study of Whaley(1986) showed that, overall the deviation between actual market prices and theoretical prices not significant. The model under prices in-the-money options. Some m odels assumed that volatility of stock price process is not constant but stochastic. Heston(1993) derived an option pricing formula when the log of underlying price distribution followed a Gamma process. Some option pricing models are based on series expansions of the underlying prices to obtain the model. Corrado and Su (1996) used a Gram-Charlier expansion of the normal distribution of returns. Popova and Ritchken (1998) created bounds on option prices when the underlying asset had the Paretian stable distribution. The study by Raj and Thurston(1998) on an intra day basis found that model under prices both calls and puts. Heston and Nandi (2000) developed a closed form option pricing formula based on a Generalized Autoregressive Conditional Heteroskedastic (GARCH) process and found lower valuation errors. Savickas (2001) developed option pricing formula based on the Weibull distribution. Anurag Satish(2002), Gururaj and Chug(2002) Varma(2002), Narayana Rao(2003) Schenbagaraman(20 03), analyse the volatility and pricing efficiency of options in India. Varma(2003) studies the pricing of volatility in the Indian Index Options market found that volatility is severely misprices and the Indian option market has moved from naà ¯ve model to Black Scholes Model. Actual Stock price movement does not follow lognormal distribution. Ait-Sahalia and Duarte(2003) consider call price as a one dimensional function of the strike price alone, by using only options with equal time to maturity and assuming that interest rate and dividend yield are deterministic function of time. Yatchew and Hardle(2006) introduced non parametric least squares estimator. They assume the call price to be a function only depending of strike price. Gatheral(2006) defines profession of models someone who finds equations that fit prices in the market prices with minimal errors. Taleb and Goldstein(2007) show that most professional operators and fund managers use a mental measure of mean deviation as a substitute for variance. Need For And Objectives Of The Study For option traders theories should arise from practice. Option price as far as traders are concerned depends on market conditions thereby on stocks and indices. In effect market conditions and related parameters. Option traders normally do not depend on theories. Traders may take decisions based on market conditions, but avoid fragility of theories. Traders specializing in using the put call parity to convert puts into calls or calls into put termed as converters. Dealers who basically operated as market makers can able to operate and hedge most of their risk by hedging option with options or cover their position by off setting. Objectives Of The Study To develop a model for pricing of call option to traders, professional and other market participants as reflected by Market Factor Coefficient (). To derive the option pricing formula based on the underlying assumptions. To find the price of varied series of options of different stocks that constitutes NIFTY Index based on the proposed model. To compute the option price based on Black-Scholes Model and compare with proposed model and observed prices and its effectiveness. Operationally price is not valuation. Valuation requires theoretical frame work with its assumptions and the structure of a model. For traders a price means marked to buy or sell an option. Traders are engineers, whether rational or even not interested in any form of probabilistic rationality. Traders produce a price of an option compatible with the instruments in the market, other market parameters, with a holding time that is stochastic. The study seeks to contribute the existing literature in many w ays. Study is to examine the market factor, role of trader subsequently by pricing of option Research Methodology Assumptions In developing model there are some underlying assumptions: Value of the option depends on market conditions or market forces. Traders quote their price based on such market conditions. Call Option is function of market factor coefficient () as reflected by Exercise Price, Current Stock Price, time to maturity. Option price depends on current stock price, Exercise price, time to maturity, Market factor coefficient which in turn depends on market movement. Fund required for option transaction by long or short is on borrowed fund, rate of which is considered as rate equivalent to risk free interest rate. Since the trader has already decided to buy or sell option, it is assumed that rate has no impact on option price. As such no adjustment on this factor is required. Transaction cost in buying and selling the option do not be reflected in the price quoted by the trader. Traders normally do not exercise the option. Position is covered by offsetting or reverse transaction i.e., buy or sell. Corporate actions like dividend declaration, bonus issue, right issue, stock split, take over, acquisition, buyout, bankruptcy, window dressing are taken care of by the market thereby reflects in market and stock price reflects such changes or adjustment. It is assumed that no adjustment is required on this count. The option markets are efficient. Market factors reflect in fair value of the option. Price of option depends on market factor as reflected in correlation, current stock price, exercise price, time to maturity. Volatility of the underlying stock has considered in the market factor coefficient. Number of contracts traded by the trader depends of on availability of fund at his disposal. Options are tradable only for some strikes in the region. Traders may take decisions based on market conditions. Traders produce a price of an option compatible with market parameters. For determining the market factor coefficient, historical data is needed i n estimation procedure. The current market price of the stock depends on market conditions. Options are tradable only for some strikes in certain range (p,q) around the actual Spot Value St. In a bullish regime actual spot St will be near to q. In bearish regime it is closer to p. In practice the number of tradable options for given expiry could be small. Main Advantages Of The Proposed Model (1) Its simple form (2) Ease of the models implementation (3) Practical application. (4) Adjustment factor and volatility taken care in the market factor coefficient. Data The proposed model is to be tested using the actual values in option market. Using market data to test any asset pricing model involves. An asset is incorrectly priced by the model. Asset is incorrectly priced by market. Both the model and the market price the asset incorrectly. The proposed study, covers call options series written on select underlying stocks included in the Nifty index during the period of one year starting from six months prior to the approval of the research proposal. Data for the study is to be collected from Centre for Monitoring Indian Economy (CMIE) PROWESS database and website of the national stock exchange of India, www.nseindia.com. The date, time, contract month, option type, strike price is to be collected from the data source. Trading days is to be considered for analysis and computation and not calendar days. Historical data is used for calculating the market factor coefficient (). Each stock moves variedly depending on market conditio ns. For calculating the market factor coefficient () values prevailed prior to the day, the option trader marked the price (decided to buy or sell) is to be taken for stock price (kj) and market index (km). Closing price of stock (kj) and the closing price of market index (km) for 20 traded days (n) or any other traded days is to be considered for computation of the market factor coefficient . Exercise or strike price (X) of available series is taken for calculation and St as current stock price. Normal distribution of market factor coefficient from normal distribution table viz, N (). The proposed model is also to be compared with Black-Scholes model. Input parameters are required for estimating theoretical call price of Black-Scholes Model. Time to expiry is annualised by dividing the number of days left for the option to expire by the total number of calendar days. Dividend yield of nifty is to be taken 1.5% p.a Volatility per annum is taken as Volatility per trading day x Trading days is assumed to be 250 Data Analysis : The easiest way to measure accuracy of the formulae is to compare the calculated values with actual call option prices quoted in the market. The differences between actual and computed values are errors. The formula that produces lowest error can be considered better. In the study, errors are measured using following estimates: Mean Error (ME) It can be computed by adding all error values and dividing total error by the number of observations. Where Otp= the theoretical/predicted price of the otpion Oa= Actual price for observation. N= Number of observations. This measure is acceptable when all error data have the same sign (either all are positive or all are negative). A low value of the Mean Error may conceal forecasting inaccuracy due to offsetting effect of large positive and negative forecast errors and make this measure unacceptable. Percentage Mean Error (PME) Mean Absolute Error (MAE) The mean absolute error value is the average absolute error value. The closer this value is to zero, the better is the forecast. MAE is computed using the formula. The neutralization of positive error by negative errors can be avoided in Mean Absolute Error. Mean Squared Error (MSE) Mean Squared Error is computed as the average of the squared error values. This measure is very sensitive to large outlier. Commonly used error indicator in statistical fitting procedures. Mean Squared Error is computed as Root Mean Squared Error (RMSE) It is square root value of mean squared error and similar to standard deviation. Thiels U Statistic Henri Thiel (1961) developed an inequality coefficient for measuring the degree to which one time series differs from another. Thiels U statistic is computed as under : Thiels inequality coefficient (Thiels U) Thiels U will equal 1 if a forecasting method is found no better than a naive forecast. If Thiels U is less than 1, it indicates that the method is superior to a naive forecast. A value close to zero indicates a good fit, whereas, value greater than, 1 indicates that the technique is actually worse than using a naive forecast. In comparing the two methods, the method that produces lower U statistic may be considered better than the other. Theils U statistics is independent of the scale of the variables; it is also constructed in such a way that it necessarily lies between zero and one, with zero indicating a perfect fit. A simple t-test is also to be carried out on the data set to test whether the model predicts correctly on average. The null hypothesis is t hat the mean pricing bias is zero. Limitations Of The Study For computing the market factor coefficient ()., market index data is considered. As there are many indices, the value (),changes from indices to indices. With the changes in the number of trading days, ‘n viz., 7 days, 14days, 21 days etc., considered for calculating ().value changes depending on trading days. References Black F(1975, â€Å"Fact and Fantasy in the Use of Options†, Financial Analysts Journal, Vol.31, pp.361-41. Black F and Scholes M S (1973), â€Å"The Pricing of Options and Corporate Liabilities†,. Journal of Political Economy, Vol.81, pp.637-654. Corrado, C.J., and Su. T (1996)Skewness and Kurtosis in SP 500 Index Returns Implied by Option Price,† Journal of Financial Research Vol. 19, pp. 175-192. Heston S (1993), â€Å"Invisible Parameters in Option Prices†, Journal of Finance, Vol.48, pp 933-947. 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