This thesis presents an approach for company valuation by a replication portfolio of traded assets in discrete time. The model allows us to value companies with an uncertain cash flow stream without having to revert to any discount rates including premia. Modelling of asset values can be...

In this paper we capture the implied distribution from option market data using non-recombining binomial trees allowing the local volatility to be a function of the underlying asset and of time. We elaborate on the initial guess for the volatility term structure, and use non-linear constrained...