Options and efficiency in spaces of bounded claims

B-Tier
Journal: Journal of Mathematical Economics
Year: 2010
Volume: 46
Issue: 4
Pages: 616-619

Authors (2)

Galvani, Valentina (University of Alberta) Troitsky, Vladimir G. (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

In a seminal contribution, Ross (1976) showed that a static finite state-space market can be completed by supplementing the primitive securities with ordinary call and put options. Galvani (2009) extends this result to norm separable Lp-spaces, with 1<=p<[infinity]. This study concludes that options maintain the same spanning power in the space of bounded payoffs topologized by the duality with the space of the state price densities. In particular, under mild assumptions on the probability space, options written on a claim that is a.s. equal to an injective function complete the market.

Technical Details

RePEc Handle
repec:eee:mateco:v:46:y:2010:i:4:p:616-619
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25