An intelligent assistant for financial hedging

Michel Benaroch, Vasant Dhar

Research output: Chapter in Book/Entry/PoemConference contribution

1 Scopus citations

Abstract

The authors describe the knowledge representation used to develop a prototype expert system for financial hedging. This representation captures the deep domain knowledge that experts use to reason about hedging decisions. It allows for reasoning qualitatively based on first principles using the fundamental quantitative valuation models that characterize each financial instrument. It also uses object-oriented concepts and inheritance to minimize the effort needed to set up the knowledge base and keep it current. It includes a calculus for derivation of qualitative knowledge of one-dimensional-order, which allows it to solve problems where optimality constraints are qualitative. It is flexible enough to reason in terms of the basic principles of risk assessment.

Original languageEnglish (US)
Title of host publicationProceedings of the Conference on Artificial Intelligence Applications
PublisherIEEE Computer Society
Pages168-174
Number of pages7
ISBN (Print)0818621354
StatePublished - Feb 1990
Externally publishedYes
EventProceedings of the 7th IEEE Conference on Artificial Intelligence Applications - Miami Beach, FL, USA
Duration: Feb 24 1991Feb 28 1991

Publication series

NameProceedings of the Conference on Artificial Intelligence Applications

Other

OtherProceedings of the 7th IEEE Conference on Artificial Intelligence Applications
CityMiami Beach, FL, USA
Period2/24/912/28/91

ASJC Scopus subject areas

  • Software

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