Seminar ``Model Risk Hedging Through Distributionally Robust Sensitivity" by Nizar Touzi (New York University)

Event Date: 

Monday, April 28, 2025 - 3:30pm to 4:30pm

Event Location: 

  • Sobel room (SH 5607F)
Title: Model Risk Hedging Through Distributionally Robust Sensitivity
 
Abstract: Distributionally robust optimization studies the worst deviation of an evaluation functional on the Wasserstein ball centered at the model of interest. We derive explicit sensitivity analysis under marginal and martingale constraints which provide first order semi-static hedge against model risk.