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Dettagli Bibliografici
Autori principali: Chau, Huy N., Rasonyi, Miklos
Natura: Preprint
Pubblicazione: 2024
Soggetti:
Accesso online:https://arxiv.org/abs/2411.19206
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Sommario:
  • In this paper, a new approach for solving the problems of pricing and hedging derivatives is introduced in a general frictionless market setting. The method is applicable even in cases where an equivalent local martingale measure fails to exist. Our main results include a new superhedging duality for American options when wealth processes can be negative and trading strategies are subject to a cone constraint. This answers one of the questions raised by Fernholz, Karatzas and Kardaras.