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Market Delay and G--expectations. (arXiv:1709.09442v1 [q-fin.MF])

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We study super-replication of contingent claims in markets with delay. This can be viewed as a stochastic target problem with delayed filtration. First, we establish a duality result for this setup. Our second result says that the scaling limit of super--replication prices for binomial models with a fixed number moments of delay is equal to the G--expectation with volatility uncertainty interval which we compute explicitly.


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