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Crowdsourcing platforms are often used to collect datasets for training machine learning models, despite higher levels of inaccurate labeling compared to expert labeling. There are two common strategies to manage the impact of such noise.…

Computation and Language · Computer Science 2022-06-14 Derek Chen , Zhou Yu , Samuel R. Bowman

The objective of this paper is to introduce the theory of option pricing for markets with informed traders within the framework of dynamic asset pricing theory. We introduce new models for option pricing for informed traders in complete…

Mathematical Finance · Quantitative Finance 2020-08-13 Yuan Hu , Abootaleb Shirvani , Stoyan Stoyanov , Young Shin Kim , Frank J. Fabozzi , Svetlozar T. Rachev

Recent empirical studies suggest that the volatility of an underlying price process may have correlations that decay slowly under certain market conditions. In this paper, the volatility is modeled as a stationary process with long-range…

Pricing of Securities · Quantitative Finance 2018-04-17 Josselin Garnier , Knut Solna

Data values in a dataset can be missing or anomalous due to mishandling or human error. Analysing data with missing values can create bias and affect the inferences. Several analysis methods, such as principle components analysis or…

Artificial Intelligence · Computer Science 2022-05-11 Sandeep Hans , Diptikalyan Saha , Aniya Aggarwal

Problem definition: We study a data-driven pricing problem in which a seller sets a price for a single item based on demand observed at a limited number of historical prices. Our goal is to quantify the value of such information and to…

Computer Science and Game Theory · Computer Science 2026-05-19 Achraf Bahamou , Omar Besbes , Omar Mouchtaki

Options have provided a field of much study because of the complexity involved in pricing them. The Black-Scholes equations were developed to price options but they are only valid for European styled options. There is added complexity when…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 Michael Maio Pires , Tshilidzi Marwala

In this manuscript, a purely data driven statistical regularization method is proposed for extracting the information from big data with randomly distributed noise. Since the variance of the noise maybe large, the method can be regarded as…

Numerical Analysis · Mathematics 2021-02-19 Jin Cheng , Jiantang Zhang , Min Zhong

The influence of human judgement is ubiquitous in datasets used across the analytics industry, yet humans are known to be sub-optimal decision makers prone to various biases. Analysing biased datasets then leads to biased outcomes of the…

Machine Learning · Computer Science 2020-02-28 George Cevora

The price of a stock will rarely follow the assumed model and a curious investor or a Regulatory Authority may wish to obtain a probability model the prices support. A risk neutral probability ${\cal P}^*$ for the stock's price at time $T$…

General Finance · Quantitative Finance 2015-06-23 Yannis G. Yatracos

We initiate the study of markets for private data, though the lens of differential privacy. Although the purchase and sale of private data has already begun on a large scale, a theory of privacy as a commodity is missing. In this paper, we…

Computer Science and Game Theory · Computer Science 2011-11-30 Arpita Ghosh , Aaron Roth

Databases are an indispensable resource for retrieving up-to-date information. However, curious database operators may be able to find out the users' interests when the users buy something from the database. For these cases, if the digital…

Cryptography and Security · Computer Science 2010-01-05 Xi Li

The problem of open-set noisy labels denotes that part of training data have a different label space that does not contain the true class. Lots of approaches, e.g., loss correction and label correction, cannot handle such open-set noisy…

Machine Learning · Computer Science 2021-06-02 Xiaobo Xia , Tongliang Liu , Bo Han , Mingming Gong , Jun Yu , Gang Niu , Masashi Sugiyama

We consider the problem of online allocation subject to a long-term fairness penalty. Contrary to existing works, however, we do not assume that the decision-maker observes the protected attributes -- which is often unrealistic in practice.…

Machine Learning · Computer Science 2023-12-05 Mathieu Molina , Nicolas Gast , Patrick Loiseau , Vianney Perchet

This paper gives an arbitrage-free prediction for future prices of an arbitrary co-terminal set of options with a given maturity, based on the observed time series of these option prices. The statistical analysis of such a multi-dimensional…

Pricing of Securities · Quantitative Finance 2014-07-22 Petros Dellaportas , Aleksandar Mijatović

A new approximate Bayesian inferential framework is proposed that exploits multiple information sources -- daily spot returns, high-frequency spot data and option prices -- and enables fast calculation of probabilistic predictions of future…

Statistical Finance · Quantitative Finance 2026-05-08 Worapree Maneesoonthorn , David T. Frazier , Gael M. Martin

The basic statistical methods of data representation did not change since their emergence. Their simplicity was dictated by the intricacies of computations in the before computers epoch. It turns out that such approach is not uniquely…

Mathematical Software · Computer Science 2007-05-23 Yefim Bakman

The approach that allows find European option price on the assumption of hedging at discrete times is proposed. The routine allows find the option price not for lognormal distribution functions of underlying asset only but for wide enough…

Probability · Mathematics 2008-12-02 D. E. Yakovlev , D. N. Zhabin

Personal data is becoming one of the most essential resources in today's information-based society. Accordingly, there is a growing interest in data markets, which operate data trading services between data providers and data consumers. One…

Computer Science and Game Theory · Computer Science 2022-06-23 Kangsoo Jung , Sayan Biswas , Catuscia Palamidessi

Lack of data and data quality issues are among the main bottlenecks that prevent further artificial intelligence adoption within many organizations, pushing data scientists to spend most of their time cleaning data before being able to…

Databases · Computer Science 2020-11-11 Paulo H. Oliveira , Daniel S. Kaster , Caetano Traina-Jr. , Ihab F. Ilyas

The problem of market clearing is to set a price for an item such that quantity demanded equals quantity supplied. In this work, we cast the problem of predicting clearing prices into a learning framework and use the resulting models to…

Machine Learning · Computer Science 2019-06-25 Weiran Shen , Sébastien Lahaie , Renato Paes Leme