Synopses & Reviews
Synopsis
With a forward by Professor Robert J. Shiller Parimutuel Wagering Introduction to Parimutuel Applications in Finance The Mathematics of Parimutuel Applications in Finance Mathematical Theorems Numerical Solution Techniques
Synopsis
Financial intermediaries typically offer derivatives to their customers only when they can hedge the exposures from these transactions. Baron and Lange show that parimutuel auctions can be used by financial intermediaries to offer derivatives without exposing themselves to risk.