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Decentralized exchanges (DEXs) are crucial to decentralized finance (DeFi) as they enable trading without intermediaries. However, they face challenges like impermanent loss (IL), where liquidity providers (LPs) see their assets' value…

计算机科学与博弈论 · 计算机科学 2026-03-04 Irina Lebedeva , Dmitrii Umnov , Yury Yanovich , Ignat Melnikov , George Ovchinnikov

This paper develops a model of liquidity provision in financial markets by adapting the Madhavan, Richardson, and Roomans (1997) price formation model to realistic order books with quote discretization and liquidity rebates. We postulate…

交易与市场微观结构 · 定量金融 2016-08-08 Julius Bonart , Fabrizio Lillo

We present a novel framework for pricing waterfall structures by simulating the uncertainty of the cashflow generated by the underlying assets in terms of value, time, and confidence levels. Our approach incorporates various probability…

证券定价 · 定量金融 2025-07-18 Nicola Jean , Giacomo Le Pera , Lorenzo Giada , Claudio Nordio

The increase of renewables in the grid and the volatility of the load create uncertainties in the day-ahead prices of electricity markets. Adaptive robust optimization (ARO) and stochastic optimization have been used to make commitment and…

最优化与控制 · 数学 2023-09-18 Dimitris Bertsimas , Angelos G. Koulouras

Prediction markets rely on liquidity to convert trades into informative prices, yet existing mechanisms fix liquidity ex ante. This restriction enforces a static trade-off between price responsiveness and worst-case loss despite inherently…

计算机科学与博弈论 · 计算机科学 2026-05-12 Enrique Nueve , Bao Nguyen , Rafael Frongillo , Bo Waggoner

This thesis develops a new framework for modelling price processes in finance, such as an equity price or foreign exchange rate. This can be related to the conventional Ito calculus-based framework through the time integral of a price's…

数理金融 · 定量金融 2025-03-21 Ryan McCrickerd

Everlasting options, a relatively new class of perpetual financial derivatives, have emerged to tackle the challenges of rolling contracts and liquidity fragmentation in decentralized finance markets. This paper offers an in-depth analysis…

计算金融 · 定量金融 2026-05-08 Hardhik Mohanty , Giovanni Zaarour , Bhaskar Krishnamachari

We consider a continuous-time financial market with no arbitrage and no transactions costs. In this setting, we introduce two types of perpetual contracts, one in which the payoff to the long side is a fixed function of the underlyers and…

数理金融 · 定量金融 2022-09-08 Guillermo Angeris , Tarun Chitra , Alex Evans , Matthew Lorig

Automated Market Makers (AMMs) are essential in Decentralized Finance (DeFi) as they match liquidity supply with demand. They function through liquidity providers (LPs) who deposit assets into liquidity pools. However, the asset trading…

系统与控制 · 电气工程与系统科学 2025-04-01 Viraj Nadkarni , Sanjeev Kulkarni , Pramod Viswanath

This paper presents a marketing analytics framework that operationalizes subscription pricing as a dynamic, guardrailed decision system, uniting multivariate demand forecasting, segment-level price elasticity, and churn propensity to…

机器学习 · 计算机科学 2026-01-22 Deepit Sapru

We introduce a modular framework that extends the signature method to handle American option pricing under evolving volatility roughness. Building on the signature-pricing framework of Bayer et al. (2025), we add three practical…

数理金融 · 定量金融 2025-08-13 Roshan Shah

This paper develops a model-free framework for static fixed-income pricing and the replication of liability cash flows. We show that the absence of static arbitrage across a universe of fixed-income instruments is equivalent to the…

数理金融 · 定量金融 2025-12-18 Damir Filipović

Decentralized perpetuals protocols have collectively reached billions of dollars of daily trading volume, yet are still not serious competitors on the basis of trading volume with centralized venues such as Binance. One of the main reasons…

计算机科学与博弈论 · 计算机科学 2025-05-27 Tarun Chitra , Theo Diamandis , Nathan Sheng , Luke Sterle , Kamil Yusubov

This paper provides a methodology for fast and accurate pricing of the long-dated contracts that arise as the building blocks of insurance and pension fund agreements. It applies the recursive marginal quantization (RMQ) and joint recursive…

计算金融 · 定量金融 2018-01-25 Ralph Rudd , Thomas A. McWalter , Joerg Kienitz , Eckhard Platen

We consider the setting in which an electric power utility seeks to curtail its peak electricity demand by offering a fixed group of customers a uniform price for reductions in consumption relative to their predetermined baselines. The…

机器学习 · 计算机科学 2018-06-20 Kia Khezeli , Eilyan Bitar

We develop a model for indifference pricing in derivatives markets where price quotes have bid-ask spreads and finite quantities. The model quantifies the dependence of the prices and hedging portfolios on an investor's beliefs, risk…

证券定价 · 定量金融 2018-03-08 John Armstrong , Teemu Pennanen , Udomsak Rakwongwan

This paper develops a rigorous mathematical framework for analyzing Concentrated Liquidity Market Makers (CLMMs) in Decentralized Finance (DeFi) within a continuous-time setting. We model the evolution of liquidity profiles as…

数理金融 · 定量金融 2024-12-25 Shen-Ning Tung , Tai-Ho Wang

In this paper we present a theoretical framework for determining dynamic ask and bid prices of derivatives using the theory of dynamic coherent acceptability indices in discrete time. We prove a version of the First Fundamental Theorem of…

风险管理 · 定量金融 2013-06-13 Tomasz R. Bielecki , Igor Cialenco , Ismail Iyigunler , Rodrigo Rodriguez

Adaptive wave model for financial option pricing is proposed, as a high-complexity alternative to the standard Black--Scholes model. The new option-pricing model, representing a controlled Brownian motion, includes two wave-type approaches:…

证券定价 · 定量金融 2010-01-06 Vladimir G. Ivancevic

As declarative query processing techniques expand in scope --- to the Web, data streams, network routers, and cloud platforms --- there is an increasing need for adaptive query processing techniques that can re-plan in the presence of…

数据库 · 计算机科学 2014-09-23 Mengmeng Liu , Zachary G. Ives , Boon Thau Loo
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