Model-independent bounds for option prices—a mass transport approach

M Beiglböck, P Henry-Labordere, F Penkner - Finance and Stochastics, 2013‏ - Springer
In this paper we investigate model-independent bounds for exotic options written on a risky
asset using infinite-dimensional linear programming methods. Based on arguments from the …

Martingale optimal transport and robust hedging in continuous time

Y Dolinsky, HM Soner - Probability Theory and Related Fields, 2014‏ - Springer
The duality between the robust (or equivalently, model independent) hedging of path
dependent European options and a martingale optimal transport problem is proved. The …

A model‐free version of the fundamental theorem of asset pricing and the super‐replication theorem

B Acciaio, M Beiglböck, F Penkner… - Mathematical …, 2016‏ - Wiley Online Library
Abstract We propose a Fundamental Theorem of Asset Pricing and a Super‐Replication
Theorem in a model‐independent framework. We prove these theorems in the setting of …

The Skorokhod embedding problem and model-independent bounds for option prices

A Cousin, S Crépey, O Guéant, D Hobson… - Paris-Princeton lectures …, 2011‏ - Springer
This set of lecture notes is concerned with the following pair of ideas and concepts: 1. The
Skorokhod Embedding problem (SEP) is, given a stochastic process X=(X t) t≥ 0 and a …

Optimal transport and Skorokhod embedding

M Beiglböck, AMG Cox, M Huesmann - Inventiones mathematicae, 2017‏ - Springer
The Skorokhod embedding problem is to represent a given probability as the distribution of
Brownian motion at a chosen stop** time. Over the last 50 years this has become one of …

Computational methods for martingale optimal transport problems

G Guo, J Obłój - The Annals of Applied Probability, 2019‏ - JSTOR
We develop computational methods for solving the martingale optimal transport (MOT)
problem—a version of the classical optimal transport with an additional martingale constraint …

Robust bounds for forward start options

D Hobson, A Neuberger - Mathematical Finance: An …, 2012‏ - Wiley Online Library
We consider the problem of finding a model‐free upper bound on the price of a forward start
straddle with payoff. The bound depends on the prices of vanilla call and put options with …

Probabilistic aspects of finance

H Föllmer, A Schied - 2013‏ - projecteuclid.org
In the past decades, advanced probabilistic methods have had significant impact on the field
of finance, both in academia and in the financial industry. Conversely, financial questions …

An explicit martingale version of the one-dimensional Brenier theorem

P Henry-Labordère, N Touzi - Finance and Stochastics, 2016‏ - Springer
By investigating model-independent bounds for exotic options in financial mathematics, a
martingale version of the Monge–Kantorovich mass transport problem was introduced in …

Robust pricing and hedging of double no-touch options

AMG Cox, J Obłój - Finance and Stochastics, 2011‏ - Springer
Double no-touch options are contracts which pay out a fixed amount provided an underlying
asset remains within a given interval. In this work, we establish model-independent bounds …