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Showing 1 to 5 of 5 for “"Indifference pricing"”.

  1. Utility Indifference Pricing of Credit Instruments

    … risk. In this thesis we address these issues by pricing credit instruments using utility indifference pricing, a method that takes into account the investor's personal risk aversion and which is not affected by the lack of liquidity. Through stochastic optimal control methods, we use indifference

    toronto-retro Repository record for Utility Indifference Pricing of Credit Instruments (opens in a new tab)

  2. Utility-based valuation for underwater employee stock options

    … basic concepts and terminology in stock-option pricing. Then, we review the valuation by replication process both in the binomial model and the Black-Scholes model. These two methods apply to valuation in the complete-market setting. Then we introduce the concept of utility function and utility …

    texas Repository record for Utility-based valuation for underwater employee stock options (opens in a new tab)

  3. Option Pricing in Non-Competitive Markets

    In the classic option pricing theory, the market is assumed to be competitive. The relaxation of the competitive market assumption introduces two features: liquidity cost and feedback effects. In our study, investors in non-competitive markets are divided into two categories: small investors and …

    york Repository record for Option Pricing in Non-Competitive Markets (opens in a new tab)

  4. Ambiguity Aversion in Commodity Markets

    … to protect themselves, and utilize a robust indifference pricing framework for valuation and hedging. Most exotic financial options written on commodities are valued by discretizing continuous-time and state models. Thus, in the first part of this thesis, we study the impact of ambiguity …

    toronto-retro Repository record for Ambiguity Aversion in Commodity Markets (opens in a new tab)

  5. PhD thesis on liquidity of bond market

    … the concepts of stochastic dominance, utility indifference pricing, and some specific assumptions on asset value and order arrival rate, the equilibrium prices and bid-ask spreads can be quantified.

    city-london Repository record for PhD thesis on liquidity of bond market (opens in a new tab)