YJA Convention 2002 07 NJ Fifth

Author(s): Young Jains of America (YJA)
Publisher: Young Jains of America YJA USA

Page 85

sessions
Valuing Jainism - Call Options
Beenet Kothari
D usiness and Jainism? Many could never imagine a option. Our target goal in Jainism is often depenD connection between the two, but this presentation dent on our age and personal circumstances. By builds the bridge that will allow us realize the true mean- keeping in mind that the greater the time to matuing and importance of practicing Jainism. Methods of fi- rity, the greater the value of an option. Thus, though nancing for business fall under essentially two methods, many say that religion is to be practiced in retireequity and debt. Recently, a new class of financial instru- ment age, religion exerts a greater influence and ment has started to be used called derivatives, which de- affect when practiced as early as possible. The time rive their value from something else - options are such an value of Jainism is greater in youth compared to example. An option is an instrument that gives its holder senile state, because at a younger age, the time the right, but not the obligation, to buy or sell something at and health permits for true devotion. The interest a fixed price in the future. Two types of options exist: put rate and volatility factors can be summarized by iland call options, allowing the buyer to wager whether the lustrating that the Western world has fast-paced life price of a certain instrument will go up or down in the fu- where time is a premium and has greater volatility in ture. The key to options is calculating the price one should its media and societal factors, thus making the nepay for a certain option. This price, essentially, allows the cessity of following and practicing Jainism even seller to determine how much the option is worth. The greater in the Western culture price of this option depends on five factors: price of the underlying instrument, the expected future price, duration This presentation will show us that the time value of time, interest rate and volatility.
religion is immense when we were are younger; that
the option value is higher in our Western environWhat if Jainism were the underlying instrument? How ment; that practicing Jainism in our volatile environwould the options model help us understand the value of ment brings the option an even higher value and practicing of Jainism? The underlying instrument is as- that we need to set achievable goal targets for oursumed to be Jainism - our sanskar, which includes ourselves. Using the financial options model, we begin culture, religion, family values, humanitarian deeds and to appreciate that the underlying philosophy, prinspiritual reading. We aim to reach a certain goal in Jainism ciple and religion is invaluable. I - this strike price is whatever we decide for it to be, and thus by keeping it attainable, we increase the value of our
notes:
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