Hedging options in non-Gaussian models is a well-known and difficult task, yet remaining important for risk practitioners from banks to insurance companies. Hence, solutions through the quadratic hedging methods have been recently suggested, see Cont and Tankov (2004), Riesner (2006) and...

The goal of this paper is to suggest a general approach for risk management by allowing jumps occurring in the underlying assets dynamics. This methodology is based on the generalized Fourier transform in line with the works of Lewis (2001), Boyarchenko and Levendorski i (2000) as well as...