Spanning and completeness in markets with contingent claims (Q1090586)
From MaRDI portal
scientific article
Language | Label | Description | Also known as |
---|---|---|---|
English | Spanning and completeness in markets with contingent claims |
scientific article |
Statements
Spanning and completeness in markets with contingent claims (English)
0 references
1987
0 references
We characterize financial markets that are ''complete'' or that contain portfolios which ''span'' all measurable functions of a particular asset payoffs, either finite and infinite dimensional. These results are then employed to describe the extent to which options trading is sufficient to complete markets, to investigate the existence of ''efficient funds'', and to establish the extent of market completeness required to ensure the unanimity and irrelevance results of modern corporation finance.
0 references
financial markets
0 references
options trading
0 references
complete markets
0 references