In Ivory Coast, mining is one of the major sources of income for local people. Because of mining, jobs have been created thus increasing employment opportunities in rural regions. Moreover, this is a job that does not require a lot of skills, so a lot of people are able to join at the same time...

We focus on two particular aspects of model risk: the inability of a chosen model to fit observed market prices at a given point in time (calibration error) and the model risk due to the recalibration of model parameters (in contradiction to the model assumptions). In this context, we use...