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Bayes prediction based on point processes and martingales : 074093 (E50) Moller C.M., University of Copenhagen, Denmark, Working Paper, nr. 132, 1995, pp. 1–19


Publisher
Elsevier Science
Year
1996
Tongue
English
Weight
118 KB
Volume
17
Category
Article
ISSN
0167-6687

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✦ Synopsis


Reviews 2.51

how certain American type options on two stocks (for example, the perpetual Margrabe option) can be priced. Applying the optional sampling theorem to certain martingales (which resemble the exponential martingale in ruin theory), we obtain several explicit results without having to deal with differential equations.