We present a general theory of hedging, that overcomes the limitations of the expected utility theory and the conventional mean-variance approach. In so doing, we introduce a hedger's multi-motive objective function

We overcome a long-standing obstacle in statistics. In doing so, we show that the distribution of the sum of log-normal variables is log-normal. Furthermore, we offer a breakthrough result in finance. In doing so, we introduce a simple, exact and explicit formula for pricing the arithmetic Asian...