CEMAPRE Seminar

Friday, January 16, 2015

An optimization criteria for the existence of risk neutral measures and absence of arbitrage


Diogo Pinheiro
(CUNY, USA)

Abstract: We will discuss an alternative characterization for risk neutral measures and absence of arbitrage in discrete time financial market models. More precisely, we relate the two concepts mentioned above with the solution of an optimal final wealth problem with the particularity that the expectation is taken with respect to a measure which is not necessarily equal to the physical measure. If time allows, we will discuss an application and future extensions.

Friday, January 16, 2015
Time: 11h30
Room: Sala IAPMEI, Edificio Quelhas, ISEG
http://cemapre.iseg.ulisboa.pt/seminars/cemapre/