Rabobank-sponsored
Vermeer retrospective
New face
IN THE US AND HOLLAND
people ~y~
2
in brief
WHAT'S NewS Issue 6 October 1995
On November 8, Queen
Beatrix of the Netherlands will
be at the Washington National
Gallery of Art to open of-
ficially the first-ever retrospec
tive of the Dutch 16th-century
old master, Johannes Vermeer.
The exhibition, created by the
Dutch Mauritshuis Museum,
will later travel back to The
Hague.
From its very inception, the
bank has been involved in cre-
ating this unique exhibition.
We are sole sponsor in the
Netherlands, not only for the
retrospective, but also for the
restoration of two works by
the artist - Girl with pearl ear-
ring and View of Delft. The
pictures were actually restored
in full public view so that any-
one interested could follow
progress. The exhibition is
unique in that it brings to-
gether works from all over the
world. Only 35 pictures are
considered real Vermeers and
of these 22 will form the retro
spective. Astronomical in-
surance costs mean it is un-
likely they will ever again be in
one place at the same time.
The Vermeers can be seen in
Washington from November
12 until February 11. They
then travel 'home' to Holland
for a three-month run at the
Mauritshuis in The Hague.
The bank has set up an advanc-
ed ticket reservation scheme
for the Dutch exhibition. If
your office is interested in
organizing a visit to the ex
hibition in The Hague with
clients you can contact Noor
Tania at +31 (0)30 2162433.
(what's in a word)-
Recently appointed head of per-
sonnel and organization, Flip
Goudsmit (41) will soon become
a familiar face for CBSers.
He joins the bank from Shell
where he spent 13 years in
human resources.
'I not only worked in the
Netherlands,' he says, 'but also
in South-East Asia and Nigeria.
Before moving into industry,
Goudsmit taught economics for
some years at senior high-school
level.
He replaces Harry Keizer who
has been appointed head of a
result-oriented management
project for member banks.
Argentine Operations manager
Christian Czar and account man
ager Marnix van Iterson join the
Masthead
Editorial Staff Anne Lavelle (Editor), Stan
Polman (Editor in Chief), Noor Tania (Final
Editor/Marketing Services).
Editorial Address Rabobank Nederland,
Piet Philipsen, Editorial
assistant, UC-R 519, P.O. Box 17100,3500
HG UTRECHT.
Telephone: +31 (0)30 2162083
Telefax:+31 (0)30 2161904
E-Mail address (for internal use only);
Philipsen, P. @ico_uc@comm
Designed and printed by
Hoonte-Holland, Utrecht.
Please send change of address cards to:
A. de Keijzer, BC 102 A.
Buenos Aires office bringing the
full complement up to 10 staff.
Germany Thomas Diederich has
been appointed trader equities
and derivatives of the financial
markets department.
London Bas Nierop will join the
London team as account
manager. He comes from the
retail side of the Member Bank
Sector.
Netherlands Senior account
manager food agri Maurice
Doppert moves to operations
where he becomes head of
product management. Formally
with the operations division, Rob
Niesert has been appointed
manager of the corporate banking
front office redesign project. Peter
de Bruin joins the government
and health-care team where he
replaces Arnoud Dokkum who
moves to the corporate finance
aerospace and export finance
team. Kees Oosterholt has been
appointed deputy general
manager of the legal and tax
department and deputy general
counsel. He will also be responsible
for CBS support. Jaap Kool joins
the international department as
liaison officer for Central and
Eastern Europe.
Singapore Geraldine Lian joins
the bank as officer Derivates
Settlement, Sunil Kumaristhe
new officer for Trade Com-
modity Finance.
South Africa Paco den Doop has
been appointed representative
at the bank's new office in
Johannesburg which will be
opening in the new year.
Models are one tooi used in
financial markets to predict
movements. Many are devel-
oped by groups of people,
hence the odd.often rather
long names. Here are a few of
the most commonly used.
Arbitrage-free model
Name says it all, ie. any model
that does not allow arbitrage
on the underlying variable.
Black-Derman-Toy model
Something to play with, per-
haps? Definitely, if you need a
one-factor interest model where
the short-term rate is the single
sourceofuncertainty.ltuses 4
observed term structure of spot
interest rates and their volatility
term structure as inputs.
Cox-Ingersoll-Ross model
As above. Allows for interest rate
mean reversion. It generates
closed-form solutions for prices
of zero-coupon bonds and put
and call options on those bonds.
Garman-Kohlhagen model
Developed to price European-
style options on spot foreign
exchange rates.
Ho-Lee model
The first attempt ever to model
movements in the entire
interest-rate term structure in
a way consistent with the
observed term structure.
Vasicek model
One-factor model on interest
rates incorporating mean rever
sion and a constant volatility for
short rates. Discount bond
prices and options on those
bonds can be deduced from it.
Hull-White model
Extension of the Vasicek model
for pricing options. Main dif-
ference is that mean reversion
is time-dependent.
Longstaff-Schwartz model
A two-factor model for interest-
rate term structure producing af
closed-form solution for price
of zero coupon bonds and a
quasi-closed form solution for
options on them.