Bid-ask price models under a markovian regime-switching environment /

dc.contributor.authorDela Vega, Engel John
dc.contributor.schoolUniversity of South Australia. UniSA Business.
dc.contributor.schoolUniSA Business
dc.date.issued2021
dc.description1 ethesis (ix, 116 pages) :
dc.descriptionillustrations.
dc.descriptionIncludes bibliographical references (pages 109-116)
dc.description.abstractThis thesis models bid and ask prices under a Markovian regime-switching environment using three approaches. Markovian regime-switching, which uses a Markov chain to represent the states of an economy, is incorporated into the dynamics to describe jumps in the prices of financial assets. Using the stochastic control approach, the price of a European-type asset is optimized via two control problems to represent bid and ask prices of the same asset. Using the conic finance approach, the bid and ask prices are characterized using distorted expectations, which assign higher weights to lower payoff values for the bid price and higher weights to higher payoff values for the ask price. In the third approach, the bid and ask prices are described by sublinear expectations, which are shown to be solutions of a new type of backward stochastic differential equation.
dc.description.dissertationThesis (PhD(Finance and related studies))--University of South Australia, 2021.
dc.identifier.urihttps://hdl.handle.net/11541.2/26747
dc.language.isoen
dc.provenanceCopyright 2021 Engel John Dela Vega.
dc.subjecttwo priced theory;Markov chains;regime-switching
dc.subject.lcshAssets (Accounting)
dc.subject.lcshFinance
dc.subject.lcshJump processes.
dc.subject.lcshMarkov processes.
dc.titleBid-ask price models under a markovian regime-switching environment /
dc.typethesis
dcterms.accessRights506 0#$fstar $2Unrestricted online access
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ror.mmsid9916595949601831

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