By using basic building blocks of derivatives theory:delta hedging and no arbitrage,this paper studies the price of Asian options with constant average duration which is differ from plain vanilla ones and the underlying assets(temperature)are assumed to be driven by fractional Ornstein-Uhlenbeck process which is reasonable for weather derivatives.

The theories and models are surveyed from two aspects namely traditional theories and modern models of term structure, main models in the frame of equilibrium and no arbitrage and their new evolvements are included.

In “The Critique of Judgement”, Kant, probed several basic problems pertaining to architecture and made penetrating analysis to uninterestedness of appreciation, purposiveness of architecture, the form proper and stimuli.

Study on no-arbitrage property of dividend discount model;

In this paper,we give the characterization of no-arbitrage.

When the financial assets and the states of nature are finite and when the friction is subject to proportional transaction costs, we characterize the existence or a necessary and sufficient condition of an optimal consumption-portfolio policy by no-arbitrage of the original market as well as a transformed market.