On (P, Q)-Binomial Extension of Cox-Ross-Rubinstein Model in Skorohod Spaces.

Abstract

In this paper, we develope a (pq)-binomial extension of the Cox-Ross-Rubinstein (CRR) model thereby enhancing its ap plicability in optimizing life insurance portfolios amidst noisy observations. We utilize mathematical constructs designed to mitigate the impact of nancial perturbations, thereby enrich ing the existing model and laying a robust foundation for nav igating uncertainties.