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Hedging in Financial Markets

Published online by Cambridge University Press:  29 August 2014

Martin Baxter
Martin Baxter*
Affiliation:
Statistical Laboratory, Cambridge University
*
Statistical Laboratory, Cambridge University, 16 Mill Lane, Cambridge CB2 ISB, England
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Abstract

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This (mostly) expository paper describes the importance of hedging to the pricing of modern financial products and how hedging may be achieved even when the traditional Black-Scholes assumptions are absent.

Keywords

Derivativeshedgingoption-pricingsuperhedgingvolatility
Type
Articles
Information
ASTIN Bulletin: The Journal of the IAA , Volume 28 , Issue 1 , May 1998 , pp. 5 - 16
Copyright
Copyright © International Actuarial Association 1998

References

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