Yuanyuan Sui

  1. Inf-convolution of g_\Gamma-solution and its applications.

    Authors: Helin Wu, Yuanyuan Sui
    Subjects: Optimization and Control
    Abstract

    A risk-neutral method is always used to price and hedge contingent claims in
    complete market, but another method based on utility maximization or risk
    minimization is wildly used in more general case. One can find all kinds of
    special risk measure in literature. In this paper, instead of using market
    modified risk measure, we use a kind of risk measure induced by
    g_\Gamma-solution or the minimal solution of a Constrained Backward Stochastic
    Differential Equation (CBSDE) directly when constraints on wealth and portfolio
    process comes to our consideration.

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