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A model of an incomplete market with the incorporation of a new notion of " inside information " is posed. The usual assumption that the stock price is Markovian is modified by adjoining a hidden Markov process to the Black-Scholes exponential Brownian motion model for stock fluctuations. The drift and volatility parameters take different values when the(More)
of probabilities. Abstract. The construction of a multiresolution analysis starts with the specification of a scale function. The Fourier transform of this function is defined by an infinite product. The convergence of this product is usually discussed in the context of L 2 (R). Here, we treat the convergence problem by viewing the partial products as(More)
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