University of Minnesota Ph.D. dissertation. June 2009. Major: Business Administration. Advisors: Alok Gupta, Gediminas Adomavicius. 1 computer fie (PDF); ix, 134 pages, appendices 1-4. Ill. (some col.)

In this thesis we address problems associated with financial modelling from a Bayesian point of view. Specifically, we look at the problem of calibrating financial models, measuring the model uncertainty of a claim and choosing an optimal hedging strategy. Throughout the study, the local...