In this article we address the problem of valuing and hedging American options on baskets and spreads, i.e., on portfolios consisting of both long and short positions. We adopt the main ideas of the Generalized Lognormal (GLN) approach introduced in Borovkova et al. (2007) and extend them to the case of American options. We approximate the basket price process by a suitable Geometric Brownian m...

Overdispersion is a common feature of models of biological data, but researchers often fail to model the excess variation driving the overdispersion, resulting in biased parameter estimates and standard errors. Quantifying and modeling overdispersion when it is present is therefore critical for robust biological inference. One means to account for overdispersion is to add an observation-level r...