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Robust hedging and pathwise calculus

Published 24 Oct 2011 in math.PR | (1110.5202v3)

Abstract: We study the connections of two different pathwise hedging approaches. These approaches are BSV by Bender-Sottinen-Valkeila and CF by Cont-Fourni\'e. We prove that both approaches give the same pathwise hedges, whenever both of the strategies exist. We also prove BSV type robust replication result for CF strategies.

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