We present the concept of a universal contingent claim introduced by the author in 1995. This concept provides a unified framework for the analysis of a wide class of financial derivatives.A universal contingent claim describes the time evolution of a contingent payoff. In the simplest case of a...

We present the concept of a universal contingent claim introduced earlier by the author. This concept provides a unified framework for the analysis of a wide class of financial derivatives. A universal contingent claim describes the time evolution of a contingent payoff defined as a real-valued...