Locally Adapt Risks Minimizing

The significant excess of the price of risk, research question in the version paper, [S. Chule, in Applied Mathematical Finance, submitted June 2016], is space-domain form re-evaluated into the stochastic problem objective of the premium risk. The adapts of the conventional generic replication method for the volatility risk is dissipative on the structure of the quadratic hedging approach. The computations performed, quantum composite for k=1 K financial assets over, the K geometric states, perfect sub-state sparsity of the functional-form adapt in the generated Weiner process and the mid-long term period of 58 months. The relative, state-space dependence adversity are deduced in the JSE-FINI index (J212) using the risk-free Repo interest rates