PRICING OF DERIVED PRODUCTS AND PROBLEMS WITH IT IN TERMS OF EQUILIBRIUM THEORY (A szarmaztatott termekek arazasa es annak problemai az egyensulyelmelet szempontjabol)

• Authors: Medvegyev Peter
• Languages of publication: HU

Abstracts

EN

The author sums up briefly the main aspects and problems to do with the pricing of derived products. The theory of derivative pricing uses the redundancy among products on the market to arrive at relative product prices. But this can be done only on a complete market, so that only with a complete market does it become possible to omit from the theory and the practice built upon it the concept of utility functions, and for that reason the principle of risk-neutral pricing is misleading. To put it another way, the theory of derived products is capable of freeing itself from the concept of utility functions only at a price where in practice it places impossible restrictions on the market structure. This it is essential to emphasize in market practice and in teaching.

Keywords

EN

FINANCIAL ECONOMICS  

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Committee for Economic Sciences of the Hungarian Avademy of Sciences
• Journal: Kozgazdasagi Szemle (Economic Review)
• Year: 2009
• Volume: 56
• Issue: 9
• Pages: 769-789
• Document type: ARTICLE

Contributors

author

Medvegyev Peter

• Peter Medvegyev, no address given, contact the journal editor

Identifiers

CEJSH db identifier

10HUAAAA078817