Modeling Financial Bubbles with Optional Semimartingales in Nonstandard Probability Spaces

Deviation of an asset price from its fundamental value, commonly referred to as a price bubble, is a well-known phenomenon in financial markets. Mathematically, a bubble arises when the deflated price process transitions from a martingale to a strict local martingale. This paper explores price bubbl...

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Bibliographic Details
Main Authors: Mohamed Abdelghani, Alexander Melnikov
Format: Article
Language:English
Published: MDPI AG 2025-03-01
Series:Risks
Subjects:
Online Access:https://www.mdpi.com/2227-9091/13/3/53
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