Abstract
We develop an algebraic framework for the description and analysis of
financial behaviours, that is, behaviours that consist of transferring
certain amounts of money at planned times.
To a large extent, analysis of financial products amounts to analysis of such behaviours.
We formalize the cumulative interest compliant conservation requirement
for financial products proposed by Wesseling and van den Bergh by an
equation in the framework developed and define a notion of financial
product behaviour using this formalization.
We also present some properties of financial product behaviours.
The development of the framework has been influenced by previous work on the process algebra \ACP.
Preprint available:
arXiv:0901.3003 [q-fin.GN]