How to Write a Valuation Equation for the App Risk

The solution is taking this very perpetual nature characteristic of the open-ended mini future and write a valuation equation for the app risk. So that turns out to be an implicit integral equation where you have your gap risk on the left side and also on the right side as an integral. Another important point I think is when you add these catastrophic jumps to the equation, you need to calibrate them somehow. And I argue that the crash cliques are the most suitable instruments from the market that you should use to calibrate these jumps.