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How to Hedge an Option Against an Adversary: Black-Scholes Pricing is Minimax Optimal

Published on Nov 07, 20141891 Views

We consider a popular problem in finance, option pricing, through the lens of an online learning game between Nature and an Investor. In the Black-Scholes option pricing model from 1973, the Investor

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How to Hedge an Option Against an Adversary: Black-Scholes Pricing is Minimax Optimal00:00
Black-Scholes Option Pricing00:10
Robust Option Pricing via Regret Minimization01:21
Black-Scholes Price is Minimax Optional02:28