Dynamic fractal asset pricing model for financial risk evaluation

This article is dedicated to the assessment of the dynamic fractional asset pricing model for financial risk evaluation and the use of the fractal markets theory to mathematically predict the price dynamics of assets as part of a financial risk management strategy. The article identifies recommendations for assessing financial risk based on mathematical methods for forecasting economic processes. Theoretical and empirical research methods were used. The article reveals the features of mathematical modeling of economic processes related to asset pricing in a volatile market. It is shown that financial mathematics in banking contributes to the stable development of the economy. The mathematical modeling of the price dynamics of financial assets is based on a substantive hypothesis and supported by fractal pair pricing models in order to reveal the specific market relations of business entities. According to the authors, the prospects of using forecast models to minimize the financial risks of derivative financial instruments are positive. The authors conclude that the considered methods contribute to managing financial risks and improving forecasts, including operations with derivatives.