Taking a portfolio perspective on option pricing and hedging, we show that within the standard Black … indefinitely. This ties the literature on option pricing and hedging closer together with the APT literature in its focus on …

studied undervarious market conditions. Among the main results area unique dichotomous pricing model,unifying and generalizing … theexisting models, that can be used for pricing any financialsecurities under both complete andincomplete markets,conditions for …