Abstract: Given two assets Sand B with price processes two correlated geometric Brownian motions S. = (Stk::o, B. = (Sdt~o and a bond B. Suppose that we can only observe B. and can only trade in B. and B or equivalently buy options on B. at time T = O. Suppose further that we want to hedge an arbitrary binary option H depending on ST; i.e. H = l{sTEA}' Under these conditions it is shown that th...

We investigate reputation systems that rate the performance of analysts who make uncertain assertions (claims accompanied by estimated probabilities). Accuracy metrics (based on the fraction correct) are fair only if all analysts handle identical or statistically similar cases. Furthermore, accuracy metrics discourage analysts from offering predictions on difficult-to-predict events. Because of...

The interpretation of membership functions of fuzzy sets as statistical likelihood functions leads to a probabilistic-possibilistic hierarchical description of uncertain knowledge. The fundamental advantage of the resulting fuzzy probabilities with respect to imprecise probabilities is the ability of using all the information provided by the data. This paper studies the possibility of using fuz...

In [6] J. Laird has shown that an infinitary sequential extension of PCF has a fully abstract model in his category of locally boolean domains (introduced in [8]). In this paper we introduce an extension SPCF∞ of his language by recursive types and show that it is universal for its model in locally boolean domains. Finally we consider an infinitary target language CPS∞ for (the) CPS translation...