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We introduce an efficient computational framework for solving a class of multi-marginal martingale optimal transport problems, which includes many robust pricing problems of large financial interest. Such problems are typically…

计算金融 · 定量金融 2025-03-21 Linn Engström , Sigrid Källblad , Johan Karlsson

This paper presents a widely applicable approach to solving (multi-marginal, martingale) optimal transport and related problems via neural networks. The core idea is to penalize the optimization problem in its dual formulation and reduce it…

最优化与控制 · 数学 2019-01-28 Stephan Eckstein , Michael Kupper

The duality between the robust (or equivalently, model independent) hedging of path dependent European options and a martingale optimal transport problem is proved. The financial market is modeled through a risky asset whose price is only…

概率论 · 数学 2013-06-19 Yan Dolinsky , H. Mete Soner

We establish dual attainment for the multimarginal, multi-asset martingale optimal transport (MOT) problem, a fundamental question in the mathematical theory of model-independent pricing and hedging in quantitative finance. Our main result…

数理金融 · 定量金融 2026-02-04 Charlie Che , Tongseok Lim , Yue Sun

In this article we discuss the problem of calculating optimal model-independent (robust) bounds for the price of Asian options with discrete and continuous averaging. We will give geometric characterisations of the maximising and the…

概率论 · 数学 2014-12-04 Florian Stebegg

The theory of Optimal Transport (OT) and Martingale Optimal Transport (MOT) were inspired by problems in economics and finance and have flourished over the past decades, making significant advances in theory and practice. MOT considers the…

概率论 · 数学 2023-04-25 Tongseok Lim

Duality for robust hedging with proportional transaction costs of path dependent European options is obtained in a discrete time financial market with one risky asset. Investor's portfolio consists of a dynamically traded stock and a static…

投资组合管理 · 定量金融 2013-08-30 Yan Dolinsky , H. Mete Soner

We consider the martingale optimal transport duality for c\`adl\`ag processes with given initial and terminal laws. Strong duality and existence of dual optimizers (robust semi-static superhedging strategies) are proved for a class of…

概率论 · 数学 2019-04-10 Sebastian Herrmann , Florian Stebegg

We consider the robust pricing and hedging of American options in a continuous time setting. We assume asset prices are continuous semimartingales, but we allow for general model uncertainty specification via adapted closed convex…

数理金融 · 定量金融 2025-10-08 Ivan Guo , Jan Obłój

The problem of robust hedging requires to solve the problem of superhedging under a nondominated family of singular measures. Recent progress was achieved by [9,11]. We show that the dual formulation of this problem is valid in a context…

证券定价 · 定量金融 2013-02-18 Dylan Possamaï , Guillaume Royer , Nizar Touzi

In this paper we consider a method of solving optimal stopping problems in discrete and continuous time based on their dual representation. A novel and generic simulation-based optimization algorithm not involving nested simulations is…

概率论 · 数学 2013-09-10 Denis Belomestny

We introduce a novel and highly tractable supervised learning approach based on neural networks that can be applied for the computation of model-free price bounds of, potentially high-dimensional, financial derivatives and for the…

计算金融 · 定量金融 2022-12-15 Ariel Neufeld , Julian Sester

We pursue robust approach to pricing and hedging in mathematical finance. We consider a continuous time setting in which some underlying assets and options, with continuous paths, are available for dynamic trading and a further set of…

数理金融 · 定量金融 2015-07-07 Zhaoxu Hou , Jan Obloj

We apply numerical dynamic programming techniques to solve discrete-time multi-asset dynamic portfolio optimization problems with proportional transaction costs and shorting/borrowing constraints. Examples include problems with multiple…

投资组合管理 · 定量金融 2020-03-05 Yongyang Cai , Kenneth Judd , Rong Xu

We consider derivatives written on multiple underlyings in a one-period financial market, and we are interested in the computation of model-free upper and lower bounds for their arbitrage-free prices. We work in a completely realistic…

最优化与控制 · 数学 2022-01-13 Ariel Neufeld , Antonis Papapantoleon , Qikun Xiang

This thesis investigates Merton's portfolio problem under two different rough Heston models, which have a non-Markovian structure. The motivation behind this choice of problem is due to the recent discovery and success of rough volatility…

数理金融 · 定量金融 2019-09-09 Benjamin James Duthie

We investigate pricing-hedging duality for American options in discrete time financial models where some assets are traded dynamically and others, e.g. a family of European options, only statically. In the first part of the paper we…

最优化与控制 · 数学 2017-04-11 Anna Aksamit , Shuoqing Deng , Jan Obłój , Xiaolu Tan

We consider an investor who wants to hedge a path-dependent option with maturity $T$ using a static hedging portfolio using cash, the underlying, and vanilla put/call options on the same underlying with maturity $ t_1$, where $0 < t_1 < T$.…

数理金融 · 定量金融 2025-11-04 Purba Banerjee , Srikanth Iyer , Shashi Jain

We propose two deep neural network-based methods for solving semi-martingale optimal transport problems. The first method is based on a relaxation/penalization of the terminal constraint, and is solved using deep neural networks. The second…

最优化与控制 · 数学 2021-03-08 Ivan Guo , Nicolas Langrené , Grégoire Loeper , Wei Ning

We consider the computation of model-free bounds for multi-asset options in a setting that combines dependence uncertainty with additional information on the dependence structure. More specifically, we consider the setting where the…

证券定价 · 定量金融 2024-04-04 Evangelia Dragazi , Shuaiqiang Liu , Antonis Papapantoleon
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