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Consider a multi-dimensional Brownian motion which models the surplus processes of multiple lines of business of an insurance company. Our main result gives exact asymptotics for the cumulative Parisian ruin probability as the initial…

概率论 · 数学 2020-04-28 Lanpeng Ji

We consider random labelings of finite graphs conditioned on a small fixed number of peaks. We introduce a continuum framework where a combinatorial graph is associated with a metric graph and edges are identified with intervals. Next we…

概率论 · 数学 2017-08-15 Krzysztof Burdzy , Soumik Pal

We consider a power utility maximization problem with additive habits in a framework of discrete-time markets and random endowments. For certain classes of incomplete markets, we establish estimates for the optimal consumption stream in…

投资组合管理 · 定量金融 2011-08-16 Roman Muraviev

In this paper we propose a general derivative pricing framework which employs decoupled time-changed (DTC) L\'evy processes to model the underlying asset of contingent claims. A DTC L\'evy process is a generalized time-changed L\'evy…

证券定价 · 定量金融 2015-02-03 Lorenzo Torricelli

We develop an agent-based simulation of the catastrophe insurance and reinsurance industry and use it to study the problem of risk model homogeneity. The model simulates the balance sheets of insurance firms, who collect premiums from…

综合经济学 · 经济学 2019-11-21 Torsten Heinrich , Juan Sabuco , J. Doyne Farmer

The main purpose of this paper is to extend the information-based asset-pricing framework of Brody-Hughston-Macrina to a more general set-up. We include a wider class of models for market information and in contrast to the original paper,…

概率论 · 数学 2021-10-05 Mohamed Erraoui , Astrid Hilbert , Mohammed Louriki

Graph aggregation is the process of computing a single output graph that constitutes a good compromise between several input graphs, each provided by a different source. One needs to perform graph aggregation in a wide variety of…

人工智能 · 计算机科学 2018-06-13 Ulle Endriss , Umberto Grandi

The aim of this contribution is to derive a general matrix formula for the net period premium paid in more than one state. For this purpose we propose to combine actuarial technics with the graph optimization methodology. The obtained…

数理金融 · 定量金融 2017-01-26 Joanna Dębicka , Beata Zmyślona

We derive tractable necessary and sufficient conditions for the absence of buy-and-hold arbitrage opportunities in a perfectly liquid, one period market. We formulate the positivity of Arrow-Debreu prices as a generalized moment problem to…

计算工程、金融与科学 · 计算机科学 2007-05-23 Alexandre d'Aspremont

We present a specialized scenario generation method that utilizes forecast information to generate scenarios for day-ahead scheduling problems. In particular, we use normalizing flows to generate wind power scenarios by sampling from a…

最优化与控制 · 数学 2022-07-12 Eike Cramer , Leonard Paeleke , Alexander Mitsos , Manuel Dahmen

We consider the problem of belief aggregation: given a group of individual agents with probabilistic beliefs over a set of uncertain events, formulate a sensible consensus or aggregate probability distribution over these events. Researchers…

人工智能 · 计算机科学 2013-02-08 David M. Pennock , Michael P. Wellman

We establish innovative liquidity premium measures, and construct liquidity-adjusted return and volatility to model assets with extreme liquidity, represented by a portfolio of selected crypto assets, and upon which we develop a set of…

投资组合管理 · 定量金融 2024-02-20 Qi Deng , Zhong-guo Zhou

In an incomplete market setting, we consider two financial agents, who wish to price and trade a non-replicable contingent claim. Assuming that the agents are utility maximizers, we propose a transaction price which is a result of the…

Modeling counterparty risk is computationally challenging because it requires the simultaneous evaluation of all the trades with each counterparty under both market and credit risk. We present a multi-Gaussian process regression approach,…

计算金融 · 定量金融 2019-10-18 Stéphane Crépey , Matthew Dixon

Existence and uniqueness of solutions to the multi-dimensional mean-field Libor market model (introduced by [7]) is shown. This is used as the basis for a numerical asset-liability management (ALM) model capable of calculating future…

风险管理 · 定量金融 2025-03-18 Florian Gach , Simon Hochgerner , Eva Kienbacher , Gabriel Schachinger

We endow the classical stochastic fluid process with a duration-dependent Markovian arrival process (DMArP). We show that this provides a flexible model for the revenue of a solar energy generator. In particular, it allows for heavy-tailed…

概率论 · 数学 2023-04-14 Hamed Amini , Andreea Minca , Oscar Peralta

We propose a projected gradient dynamical system as a model for a bargaining scheme for an asset for which the two interested agents have personal valuations which do not initially coincide. The personal valuations are formed using…

交易与市场微观结构 · 定量金融 2011-09-15 D. Pinheiro , A. A. Pinto , S. Z. Xanthopoulos , A. N. Yannacopoulos

The market practice of extrapolating different term structures from different instruments lacks a rigorous justification in terms of cash flows structure and market observables. In this paper, we integrate our previous consistent theory for…

证券定价 · 定量金融 2013-04-05 Andrea Pallavicini , Damiano Brigo

Climate adaptation could yield significant benefits. However, the uncertainty of which future climate scenarios will occur decreases the feasibility of proactively adapting. Climate adaptation projects could be underwritten by benefits paid…

综合金融 · 定量金融 2022-07-06 John Nay

We extend the information-based asset-pricing framework by Brody, Hughston \& Macrina to incorporate a stochastic bankruptcy time for the writer of the asset. Our model introduces a non-defaultable cash flow $Z_T$ to be made at time $T$,…

概率论 · 数学 2024-07-15 Mohammed Louriki