Robust hedging gans

Y Limmer, B Horvath - arxiv preprint arxiv:2307.02310, 2023‏ - arxiv.org
The availability of deep hedging has opened new horizons for solving hedging problems
under a large variety of realistic market conditions. At the same time, any model-be it a …

Robust deep hedging

E Lütkebohmert, T Schmidt, J Sester - Quantitative Finance, 2022‏ - Taylor & Francis
We study pricing and hedging under parameter uncertainty for a class of Markov processes
which we call generalized affine processes and which includes the Black–Scholes model as …

Deep signature FBSDE algorithm

Q Feng, M Luo, Z Zhang - arxiv preprint arxiv:2108.10504, 2021‏ - arxiv.org
We propose a deep signature/log-signature FBSDE algorithm to solve forward-backward
stochastic differential equations (FBSDEs) with state and path dependent features. By …

[HTML][HTML] Bayesian Lower and Upper Estimates for Ether Option Prices with Conditional Heteroscedasticity and Model Uncertainty

TK Siu - Journal of Risk and Financial Management, 2024‏ - mdpi.com
This paper aims to leverage Bayesian nonlinear expectations to construct Bayesian lower
and upper estimates for prices of Ether options, that is, options written on Ethereum, with …

An efficient computational method for solving the fractional form of the European option price PDE with transaction cost under the fractional Heston model

P Sawangtong, M Taghipour, A Najafi - Engineering Analysis with …, 2024‏ - Elsevier
This paper introduces a new method for precise option pricing analysis by utilizing the
fractional form of the option price partial differential equation (PDE) and implementing a …

Robust Hedging GANs: Towards Automated Robustification of Hedging Strategies

Y Limmer, B Horvath - Applied Mathematical Finance, 2024‏ - Taylor & Francis
The availability of deep hedging has opened new horizons for solving hedging problems
under a large variety of realistic market conditions. At the same time, any model–be it a …

Valuation of European options under an uncertain market price of volatility risk

B Jaroszkowski, M Jensen - Applied Mathematical Finance, 2022‏ - Taylor & Francis
We propose a model to quantify the effect of parameter uncertainty on the option price in the
Heston model. More precisely, we present a Hamilton–Jacobi–Bellman framework which …

Classical Option Pricing and Some Steps Further

V Olkhov - arxiv preprint arxiv:2004.13708, 2020‏ - arxiv.org
This paper considers the asset price p as relations C= pV between the value C and the
volume V of the executed transactions and studies the consequences of this definition for the …

Time Discretized Variational Iteration Method for the Stochastic Volatility Process with Jumps

HI Ojarikre, EJ Mamadu - Advances in Pure Mathematics, 2022‏ - scirp.org
A model for both stochastic jumps and volatility for equity returns in the area of option pricing
is the stochastic volatility process with jumps (SVPJ). A major advantage of this model lies in …

A Bayesian nonparametric approach to option pricing

Z Qin, C Almeida - Brazilian Review of Finance, 2020‏ - periodicos.fgv.br
Accurately modeling the implied volatility surface is of great importance to option pricing,
trading and hedging. In this paper, we investigate the use of a Bayesian nonparametric …