HU, YING; IMKELLER, PETER; MÜLLER, MATTHIAS - In: International Journal of Theoretical and Applied … 08 (2005) 04, pp. 483-508
We consider financial markets with agents exposed to an external source of risk which cannot be hedged through investments on the capital market alone. The sources of risk we think of may be weather and climate. Therefore we face a typical example of an incomplete financial market. We design a...