Discontinuities in the vector field of differential equations are a typical characteristic of disequilibrium dynamics. One way of co ping with this problem is offered by the Filippov solution. The autho rs prove existence and uniqueness of a Filappov solution for a so-cal led sliding trajectory...

The traditional valuation formulas for options were derived in a complete market setting and were based on the no-arbitrage principle. If the asset structure is incomplete, the presence of options affects the linear subspace spanned by the payoffs of the existing assets, and the pricing of...