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The rst integral on the right is an ordinary integral with respect to the usual measure ds. The second integral is a stochastic integral with respect to Brownian motion. Both integrals are random variables, since integrands are random processes. Let us now try to de ne what a stochastic integral is. We start with the following example:

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good proxy for short-term swaps and are particularly useful for LIBORbased funds. Eurodollar futures have maturities up to 10 years, although liquidity is relatively low for back contracts. As they are cash settled, there are no technical factors related to supply and demand, and no delivery options. For longer-term securities, Treasury bond and note futures can be valuable hedging instruments. Contracts exist for the 2-, 5-, 10- and 20year Treasury securities. Treasury bond futures do not capture swap spreads, which can be a risk for LIBOR-based funds, but their liquidity and high credit quality may compensate for this, at least in the short term. Furthermore, swap spread risk can be hedged independently, without actually entering into swaps. Nevertheless, hedgers using futures should be aware of some problems and complexities. First, technical situations with deliverable bonds can reduce the implied nancing (repo) rate, causing negative carry for the short position in the contract and potentially wiping out the return of the asset. Second, the short position in the contract has certain delivery options that are priced into the contract. These options can be classi ed as either timing or quality options. There is a great deal of academic research dealing with these options, and although their values are disputed, it is generally agreed that they have signi cant value and that the seller of a futures contract is selling at a price lower than the cash-andcarry price because of these options. Finally, futures contracts are marked to market daily, and margin must be posted to either the buyer s or the seller s account if the contract price changes. This is an additional complication that the manager using futures to hedge must consider.

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tive. We can measure the degree of association between the fund and benchmark return variability using regression analysis and other tools.

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Next, you need some methods to process information coming from the JSP. First you will need a method to take the action performed by the JSP. Remember that two JSPs will be accessing this bean instance one to fetch the original data and one to update it and so the bean needs to know which action has been requested. Action information, as it always comes from a HTTP request, will be a string, as shown in the following code:

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The asynchronous transfer mode (ATM) was conceived to meet the sophisticated telecommunication requirements of the techniques and technologies of information transport ATM is a specific packet-oriented transfer mode which uses asynchronous time-division multiplexing techniques It combines the flexibility of packet switching and the simplicity of circuit switching The multiplexed information flow is organized into fixed length cells A cell consists of an information field of 48 bytes and a header of 5 bytes (see Figure 318) The network uses the header to transport the data from source to destination Transfer capacity is assigned by negotiation and is based on the source requirements and the available capacity In general, signalling and user information are carried on separate ATM connections ATM is the solution selected for implementing broadband ISDN (B-ISDN) and so influences the standardization of digital hierarchies, multiplexing structures, switching and interfaces for broadband signals.

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