Non-Uniqueness of Best-Of Option Prices Under Basket Calibration

This paper demonstrates that perfectly calibrating a multi-asset model to observed market prices of all basket call options is insufficient to uniquely determine the price of a best-of call option. Previous research on multi-asset option pricing has primarily focused on complete market settings or a...

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Bibliographic Details
Main Authors: Mohammed Ahnouch, Lotfi Elaachak, Abderrahim Ghadi
Format: Article
Language:English
Published: MDPI AG 2025-06-01
Series:Risks
Subjects:
Online Access:https://www.mdpi.com/2227-9091/13/6/117
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