We present a new approach for studying the problem of optimal hedging of a European option in a finite and complete discrete-time market model. We consider partial hedging strategies that maximize the success probability or minimize the expected shortfall under a cost constraint and show that...

We show that sector/firm restructuralization can be seen as the problem of mathematical programming. If the prices of inputs or outputs are not known, the information on technical efficiency may be used instead of economic efficiency. Data envelopment analysis is used to evaluate the technical...