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A storage system where a k units stock is replaced instantaneously, when required,is presented in this work. It is also supposed a Poisson demand. It is proved that the storage system replenishment cost expected present value function…

Probability · Mathematics 2021-10-06 Manuel Alberto M. Ferreira

This paper establishes the existence of equilibrium in an economy with production and a continuum of consumers, each of whose incomplete and price-dependent preferences are defined on commodities they may consider deleterious, bads which…

Theoretical Economics · Economics 2025-11-04 Robert M. Anderson , Haosui Duanmu , M. Ali Khan , Metin Uyanik

The paper introduces benchmark-neutral pricing and hedging for long-term contingent claims. It employs the growth optimal portfolio of the stocks as numeraire and the new benchmark-neutral pricing measure for pricing. For a realistic…

Mathematical Finance · Quantitative Finance 2024-07-03 Eckhard Platen

We perform the a posteriori error analysis of residual type of a transmission problem with sign changing coefficients. According to [6] if the contrast is large enough, the continuous problem can be transformed into a coercive one. We…

Numerical Analysis · Mathematics 2010-09-17 Serge Nicaise , Juliette Venel

We determine the asymptotic behaviour of certain incomplete Betafunctions.

Classical Analysis and ODEs · Mathematics 2021-02-09 Jan-Christoph Schlage-Puchta

This paper considers exponential utility indifference pricing for a multidimensional non-traded assets model, and provides two linear approximations for the utility indifference price. The key tool is a probabilistic representation for the…

Portfolio Management · Quantitative Finance 2014-04-01 Vicky Henderson , Gechun Liang

In narrative synthesis of evidence, it can be the case that the only quantitative measures available concerning the efficacy of an intervention is the direction of the effect, i.e. whether it is positive or negative. In such situations, the…

Methodology · Statistics 2021-05-05 Stavros Nikolakopoulos

We show that the existence of an equivalent local martingale measure for asset prices does not prevent negative prices for European calls written on positive stock prices. In particular, we illustrate that many standard no-arbitrage…

Pricing of Securities · Quantitative Finance 2013-01-03 Johannes Ruf

We report the results of our empirical investigations on the Bateman-Horn conjecture. This conjecture, in its commonly known form, produces rather large deviations when the polynomials involved are not monic. We propose a modified version…

Number Theory · Mathematics 2019-06-11 Weixiong Li

A solvency cone is a polyhedral convex cone which is used in Mathematical Finance to model proportional transaction costs. It consists of those portfolios which can be traded into nonnegative positions. In this note, we provide a…

Optimization and Control · Mathematics 2024-01-26 Andreas Löhne , Birgit Rudloff

The analysis of high-frequency financial data is often impeded by the presence of noise. This article is motivated by intraday return data in which market microstructure noise appears to be rough, that is, best captured by a continuous-time…

Statistics Theory · Mathematics 2024-11-12 Carsten H. Chong , Thomas Delerue , Guoying Li

We suggest that the error quoted in the Mainz determination of the E2/M1 ratio (at the resonance energy) should be enlarged. A term dropped in expressions used by this group could be significant.

Nuclear Theory · Physics 2009-10-30 R. L. Workman

Logarithmic score and information divergence appear in information theory, statistics, statistical mechanics, and portfolio theory. We demonstrate that all these topics involve some kind of optimization that leads directly to regret…

Information Theory · Computer Science 2017-07-17 Peter Harremoës

We examine weak anticipations in discrete-time and continuous-time financial markets consisting of one risk-free asset and multiple risky assets, defining a minimal probability measure associated with the anticipation that does not depend…

Probability · Mathematics 2022-05-12 Geoff Lindsell

We describe a rational, but low resolution model of probability.

History and Overview · Mathematics 2021-12-15 Zalan Gyenis , Andras Kornai

This note provides a new approach to a result of Foregger and related earlier results by Keilson and Eberlein. Using quite different techniques, we prove a more general result from which the others follow easily. Finally, we argue that the…

Optimization and Control · Mathematics 2013-03-22 Alexander Kovačec , Salma Kuhlmann , Cordian Riener

We investigate a structured class of nonconvex-nonconcave min-max problems exhibiting so-called \emph{weak Minty} solutions, a notion which was only recently introduced, but is able to simultaneously capture different generalizations of…

Optimization and Control · Mathematics 2023-06-21 Axel Böhm

We study the utility indifference price of a European option in the context of small transaction costs. Considering the general setup allowing consumption and a general utility function at final time T, we obtain an asymptotic expansion of…

Optimization and Control · Mathematics 2015-04-07 Dylan Possamaï , Guillaume Royer

Using Singular Rescaling We Prove Some Bifurcation Results. This note Presents short proofs for some Bifurcation results which had been appeared with other authors.

Dynamical Systems · Mathematics 2024-04-16 Ali Taghavi

We adress the maximization problem of expected utility from terminal wealth. The special feature of this paper is that we consider a financial market where the price process of risky assets can have a default time. Using dynamic…

Computational Finance · Quantitative Finance 2010-07-13 Thomas Lim , Marie-Claire Quenez