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Illustrating a problem in the self-financing condition in two 2010-2011 papers on funding, collateral and discounting
Funding cost cost of funding funding and discounting self-financing strategy trading strategies hedging.
2012/9/14
We illustrate a problem in the self-financing condition used in the papers “Fund-ing beyond discounting: collateral agreements and derivatives pricing” (Risk Magazine,February 2010) and “Partial Diffe...