contingent claim

In the traditional approach if the value of an asset or a contingent claim is affordable then it can be achieved.

An early statement and demonstration of the martingale property of prices for contingent claims.

With Complete Markets there are two state contingent claims:

A pure security or simple contingent claim is a state claim that pays off in only one state.

This is the well-known finance result that the contingent claim that delivers more resources in the state of low market returns has a higher price.

He is the author of several books and research papers on hedge funds, emerging markets and the modeling of interest rate contingent claims.

(derivatives, contingent claim valuation)

With a complete set of state contingent claims (also known as Arrow-Debreu securities) agents can trade these securities to hedge against undesirable or bad outcomes.

- "Sunspot equilibrium in an overlapping-generations economy with an idealized contingent claims market" (with K. Shell).

This was not possible in the traditional complete market general equilibrium model as any contingent claim could be replicated by trading and financial innovation would have no real effect.

Other finance-related quantities belonging to the class of the expected discounted penalty function include the perpetual American put option, the contingent claim at optimal exercise time, and more.

While several contingent claims are traded routinely against many states such as insurance policies, futures, financial options, among others, the set of outcomes is far greater than the set of claims.

The criterion used by courts to determine whether a contingent claim will be included in the insolvency process is whether the event that has not yet occurred is too remote or speculative.

The advantage of this approach is that market incompleteness and the available state contingent claims respond to the economic environment, which makes the model appealing for policy experiments since it is less vulnerable to the Lucas critique.

Pension Agency's Claims Pan Am said the Pension Benefit Guaranty Corporation, the Government agency that insures certain corporate pension funds, was its largest unsecured creditor, with $490 million in contingent claims.

This is contrasted with facts (which may also be referred to as contingent claims or synthetic claims) which are true in this world, as it has historically unfolded, but which is not true in at least one possible world, as it might have unfolded.

LeBel J disagreed with McLachlin CJ's use of the "likelihood approaching certainty" test, saying that he preferred Deschamps J's "sufficient certainty" test instead, as it best reflects how both the common law and the civil law view and deal with contingent claims.

Because a trading strategy can be simplified into a set of simple contingent claims (strategies paying 1 in one state and 0 in every other state), a complete market can be generalized as the ability to replicate cash flows of all simple contingent claims.