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Showing 1 to 6 of 6 for “"Risk-Neutral Pricing"”.

  1. Risk-neutral pricing in a behavioural framework

    This thesis investigates three issues related to risk-neutral pricing. The first aspect investigated is the effect of discretization and truncation errors on risk-neutral moments, as defined in Bakshi, Kapadia and Madan (2003). It proposes exact solutions for the finite integrals in the volatility, …

    essex Repository record for Risk-neutral pricing in a behavioural framework (opens in a new tab)

  2. Pricing interest rate contingent claims

    … claims in several ways. First, futures pricing models and futures options pricing models are derived. These models are under the settings of both single state variable and two state variables. The derivations make use of regular techniques in solving partial differential equations and …

    uiuc Repository record for Pricing interest rate contingent claims (opens in a new tab)

  3. Models for Interest Rates and Interest Rate Derivatives

    … models for the term structure. The principals of risk neutral pricing are introduced and the Black model is derived. Closed form bond valuation equations are derived for the Cox, Ingersoll and Ross (CIR) model. Short examples of calibration of the Vasicek, CIR and LIBOR market model are given.

    humboldt-diss Repository record for Models for Interest Rates and Interest Rate Derivatives (opens in a new tab)

  4. Recursive marginal quantization: extensions and applications in finance

    … many challenging finance applications, including pricing claims with path dependence and early exercise features, stochastic optimal control, filtering problems and the efficient calibration of large derivative books. Recursive marginal quantization of an Euler scheme has recently been proposed as …

    cape-town Repository record for Recursive marginal quantization: extensions and applications in finance (opens in a new tab)

  5. Pricing of contingent claims under the real-world measure

    … the real-world probability measure. Real-world pricing results naturally by selecting the numeraire as the growth optimal portfolio (GOP). Under this approach, the existence of an equivalent risk-neutral probability measure is not required. Furthermore, the GOP can be used to define other basic …

    uts Repository record for Pricing of contingent claims under the real-world measure (opens in a new tab)

  6. Stochastic Volatility Models for Contingent Claim Pricing and Hedging

    … that we emphasise is that novel models of option pricing, as is suggested by Hull and White (1987) [1] and others, must account for the discrepancy observed on the implied volatility curve. To achieve this we also propose that market volatility be modeled as random or stochastic as opposed to …

    western-cape Repository record for Stochastic Volatility Models for Contingent Claim Pricing and Hedging (opens in a new tab)