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This thesis develops a mathematical framework for the analysis of continuous-time trading strategies which, in contrast to the classical setting of continuous-time finance, does not rely on stochastic integrals or other probabilistic…

概率论 · 数学 2016-02-16 Candia Riga

This paper develops a mathematical framework for the analysis of continuous-time trading strategies which, in contrast to the classical setting of continuous-time mathematical finance, does not rely on stochastic integrals or other…

数理金融 · 定量金融 2016-02-17 Candia Riga

We describe the pricing and hedging of financial options without the use of probability using rough paths. By encoding the volatility of assets in an enhancement of the price trajectory, we give a pathwise presentation of the replication of…

数理金融 · 定量金融 2020-07-09 John Armstrong , Claudio Bellani , Damiano Brigo , Thomas Cass

The paper develops no arbitrage results for trajectory based models by imposing general constraints on the trading portfolios. The main condition imposed, in order to avoid arbitrage opportunities, is a local continuity requirement on the…

概率论 · 数学 2015-01-19 Alexander Alvarez , Sebastian Ferrando

We consider a general path-dependent version of the hedging problem with price impact of Bouchard et al. (2019), in which a dual formulation for the super-hedging price is obtained by means of PDE arguments, in a Markovian setting and under…

概率论 · 数学 2020-01-09 Bruno Bouchard , Xiaolu Tan

Following a hedging based approach to model free financial mathematics, we prove that it should be possible to make an arbitrarily large profit by investing in those one-dimensional paths which do not possess local times. The local time is…

概率论 · 数学 2015-04-21 Nicolas Perkowski , David J. Prömel

It is shown that delta hedging provides the optimal trading strategy in terms of minimal required initial capital to replicate a given terminal payoff in a continuous-time Markovian context. This holds true in market models where no…

证券定价 · 定量金融 2012-10-10 Johannes Ruf

The paper studies the concepts of hedging and arbitrage in a non probabilistic framework. It provides conditions for non probabilistic arbitrage based on the topological structure of the trajectory space and makes connections with the usual…

综合金融 · 定量金融 2011-03-08 Alexander Alvarez , Sebastian Ferrando , Pablo Olivares

In this paper, we address the question of the optimal Delta and Vega hedging of a book of exotic options when there are execution costs associated with the trading of vanilla options. In a framework where exotic options are priced using a…

交易与市场微观结构 · 定量金融 2020-05-22 Joaquin Fernandez-Tapia , Olivier Guéant

We show how the robustness of gamma hedging can be understood without using rough-path theory. Instead, we use the concepts of $p^{th}$ variation along a partition sequence and Taylor's theorem directly, rather than defining an integral and…

概率论 · 数学 2026-01-14 John Armstrong , Purba Das

In a market with a rough or Markovian mean-reverting stochastic volatility there is no perfect hedge. Here it is shown how various delta-type hedging strategies perform and can be evaluated in such markets in the case of European options. A…

证券定价 · 定量金融 2020-03-19 Josselin Garnier , Knut Solna

We introduce a new method of delta hedging. In many cases, this method results in a lower cost than the Black-Scholes method. To calculate the cost of hedging, we develop a Mathematica program that include the two-dimensional Newton-Raphson…

最优化与控制 · 数学 2008-12-02 Yukio Hirashita

We unify and establish equivalence between the pathwise and the quasi-sure approaches to robust modelling of financial markets in discrete time. In particular, we prove a Fundamental Theorem of Asset Pricing and a Superhedging Theorem,…

数理金融 · 定量金融 2019-12-04 Jan Obloj , Johannes Wiesel

We investigate whether it is possible to formulate option pricing and hedging models without using probability. We present a model that is consistent with two notions of volatility: a historical volatility consistent with statistical…

证券定价 · 定量金融 2021-08-10 Damiano Brigo

In this paper, we provide a model-independent extension of the paradigm of dynamic hedging of derivative claims. We relate model-independent replication strategies to local martingales having a closed form which we can characterise via…

数理金融 · 定量金融 2018-10-09 Tigran Atoyan

We consider the fundamental theorem of asset pricing (FTAP) and hedging prices of options under non-dominated model uncertainty and portfolio constrains in discrete time. We first show that no arbitrage holds if and only if there exists…

概率论 · 数学 2015-03-30 Erhan Bayraktar , Zhou Zhou

We provide a model-free pricing-hedging duality in continuous time. For a frictionless market consisting of $d$ risky assets with continuous price trajectories, we show that the purely analytic problem of finding the minimal superhedging…

数理金融 · 定量金融 2019-07-29 Daniel Bartl , Michael Kupper , David J. Prömel , Ludovic Tangpi

We apply rough-path theory to study the discrete-time gamma-hedging strategy. We show that if a trader knows that the market price of a set of European options will be given by a diffusive pricing model, then the discrete-time gamma-hedging…

数理金融 · 定量金融 2025-09-17 John Armstrong , Andrei Ionescu

This paper gives several simple constructions of the pathwise Ito integral $\int_0^t\phi d\omega$ for an integrand $\phi$ and a price path $\omega$ as integrator, with $\phi$ and $\omega$ satisfying various topological and analytical…

数理金融 · 定量金融 2016-06-09 Vladimir Vovk

We investigate the (functional) convex order of for various continuous martingale processes, either with respect to their diffusions coefficients for L\'evy-driven SDEs or their integrands for stochastic integrals. Main results are bordered…

概率论 · 数学 2014-07-24 Gilles Pagès
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