Equilibrium of financial derivative markets under portfolio insurance constraints

C-Tier
Journal: Economic Modeling
Year: 2016
Volume: 52
Issue: PA
Pages: 278-291

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper examines the equilibrium of financial portfolios under insurance constraints on terminal wealth. We consider a single period economy in which agents search to maximize the expected utilities of their wealth at maturity. Three main classes of financial assets are considered: a riskless asset (usually the bond), a risky asset (the stock) and European options of all strikes (corresponding to financial derivatives). Both partial and general optimal financial equilibria are determined and analyzed for quite general utility functions and insurance constraints.

Technical Details

RePEc Handle
repec:eee:ecmode:v:52:y:2016:i:pa:p:278-291
Journal Field
General
Author Count
2
Added to Database
2026-01-24