In this paper we develop a new notion of convergence for discussing the relationship between discrete and continuous financial models, "D"-super-2-convergence. This is stronger than weak convergence, the commonly used mode of convergence in the finance literature. We show that...

This paper compares the current regulatory capital requirements under the Dodd-Frank Act (DFA) and the 10-percent leverage ratio, as proposed by the U.S. Treasury and the U.S. House of Representatives' Financial CHOICE Act (FCA). We find that the majority of U.S. banks would not qualify for an...

In Latin America and the Caribbean (LAC), financial technology has been growing rapidly and is on the agenda of many policy makers. Fintech provides opportunities to deepen financial development, competition, innovation, and inclusion in the region but also creates new and only partially...

The integrand, when a martingale under an equivalent measure is represented as a stochastic integral, is determined by elementary methods in the Markov situation. Applications to hedging portfolios in finance are described.