In this paper, some decentralized control problems composed of two subsystems are addressed from a special perspective. First, it is pointed out that some subsystems must be unstable to stabilize the overall interconnected system in some special cases. Then, a special kind of decentralized...

Options are believed to contain unique information on the risk-neutral moment generating function (MGF) or the risk-neutral probability density function (PDF) of the underlying asset. This paper applies the wavelet method to approximate the implied risk-neutral MGF from option prices. Monte...