This paper aims at a unified treatment of hedging in market models driven by martingales with deterministic bracket $⟨M,M{⟩}_t$, including Brownian motion and the Poisson process as particular cases. Replicating hedging strategies for European, Asian and Lookback options are explicitly computed using either the Clark-Ocone formula or an extension of the delta hedging method, depending on which is most appropriate.

The aim of this paper is to give a general idea to state optimality conditions of control problems in the following form: ${\displaystyle \underset{{\displaystyle (u,v)\in {𝒰}_{ad}}}{inf}{\int }_0^{1}f\left(t,u\left({\theta }_v\left(t\right)\right),u^{\text{'}}\left(t\right),v\left(t\right)\right)\mathrm{d}t}$, (1) where ${𝒰}_{ad}$ is a set of admissible controls and ${\theta }_v$ is the solution of the following equation: $\{\frac{\mathrm{d}\theta \left(t\right)}{\mathrm{d}t}=g(t,\theta \left(t\right),v\left(t\right)),t\in [0,1]$ ; ${\displaystyle \theta \left(0\right)={\theta }_0,\theta \left(t\right)\in [0,1]\forall t}$. (2). The results are nonlocal and new.