Path-dependent options have become increasingly popular over the last few years, in particular in FX markets, because of the greater precision with which they allow investors to choose or avoid exposure to well-defined sources of risk. The goal of the paper is to exhibit the power of stochastic...

The first goal of this paper is to clarify the implications of the no arbitrage assumption in the context of several countries and extend to a general setting of continuous-time finance and stochastic interest rates results which were more or less present in classical finance models such as the...