Before revision: In this paper we will develop an original approach, based in the use of renewal equations, for obtaining pricing expressions for financial instruments whose underlying asset can be solely described through a simple continuous-time random walk (CTRW) . This enhances the potential use of CTRW techniques in finance.
After revision: In this paper we will develop a methodology for obtaining pricing expressions for financial instruments whose underlying asset can be solely described through a simple continuous-time random walk (CTRW) . This enhances the potential use of CTRW techniques in finance.