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On the quasi-sure superhedging duality with frictions. (arXiv:1809.07516v1 [q-fin.MF])

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We prove the superhedging duality for a discrete-time financial market with proportional transaction costs under portfolio constraints and model uncertainty. Frictions are modeled through solvency cones as in the original model of [Kabanov, Y., Hedging and liquidation under transaction costs in currency markets. Fin. Stoch., 3(2):237-248, 1999] adapted to the quasi-sure setup of [Bouchard, B. and Nutz, M., Arbitrage and duality in nondominated discrete-time models. Ann. Appl. Probab., 25(2):823-859, 2015]. Our results hold under the condition of No Strict Arbitrage and under the efficient friction hypothesis.


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