Equilibrium pricing of contingent claims
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Masaaki Kijima; Akira Maeda; Katsumasa Nishide
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Article
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2009
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John Wiley and Sons
🌐
English
⚖ 212 KB
## Abstract We advance a model of the tradable permit market and derive a pricing formula for contingent claims traded in the market in a general equilibrium framework. It is shown that prices of such contingent claims exhibit significantly different properties from those in the ordinary financial