arbitrage. Because of these limits, derivative securities can play primary roles in risk allocation and investors can demand …Classic option pricing theory values a derivative contract via dynamic replication, and views the derivative as … reducing the risk in derivative investments, the remaining risk can still be large and significant due to practical limits of …

, we discuss the absence of arbitrage, its relation to economic viability, and the existence of suitable nonlinear pricing … expectations. Classical financial markets under risk and no ambiguity are contained as special cases, including various forms of …

, we discuss the absence of arbitrage, its relation to economic viability, and the existence of suitable nonlinear pricing … expectations. Classical financial markets under risk and no ambiguity are contained as special cases, including various forms of …

ratio of one asset is always greater than that of the other one. We extend the theory of risk measures by proving that the … arbitrage opportunity in the market and whether there is any anomaly in the market. In this paper, we first study the …-order risk-seeking SD (RSD) alone for any two prospects is not sufficient to imply Omega ratio dominance insofar that the Omega …