• 1 Introduction
  • 2 Noise option contract design
  • 3 Modeling aircraft noise index
  • 4 Calibration
  • 4.1 Flight movements model calibration
  • 4.2 Hidden renewal process calibration
  • 5 Fixing the martingale measure: Equilibrium pricing
  • 6 Results
  • 6.1 Correlation between value creation and noise
  • 6.2 Option prices
  • 6.3 Sensitivity analysis
  • 7 Conclusion
  • 8 Appendix
  • 8.1 Proof of Theorem ??.
  • 8.2 Covariances and variances
  • 8.3 Flight movements per operating variant
  • 8.4 Expected value creation per operating variant