{"paper":{"title":"Entropic Dynamics of Jump-Diffusion Option Pricing","license":"http://creativecommons.org/licenses/by/4.0/","headline":"","cross_cats":["q-fin.MF","q-fin.ST"],"primary_cat":"q-fin.PR","authors_text":"Mohammad Abedi","submitted_at":"2026-07-07T14:53:50Z","abstract_excerpt":"Standard models of stock price dynamics and option valuation usually begin by postulating stochastic processes. This paper develops an entropic inference framework that derives these processes from information constraints. The key symmetry is that markets reward returns rather than price levels, which selects log price as the dynamical variable. Price changes are represented by two channels. The continuous channel carries constraints of continuity and directionality. The jump channel carries the arrival rate and the first two moments of jump size. Since these constraints apply to disjoint part"},"claims":{"count":0,"items":[],"snapshot_sha256":"258153158e38e3291e3d48162225fcdb2d5a3ed65a07baac614ab91432fd4f57"},"source":{"id":"2607.06355","kind":"arxiv","version":1},"verdict":{"id":null,"model_set":{},"created_at":null,"strongest_claim":"","one_line_summary":"","pipeline_version":null,"weakest_assumption":"","pith_extraction_headline":""},"integrity":{"clean":true,"summary":{"advisory":0,"critical":0,"by_detector":{},"informational":0},"endpoint":"/pith/2607.06355/integrity.json","findings":[],"available":true,"detectors_run":[],"snapshot_sha256":"c28c3603d3b5d939e8dc4c7e95fa8dfce3d595e45f758748cecf8e644a296938"},"references":{"count":0,"sample":[],"resolved_work":0,"snapshot_sha256":"258153158e38e3291e3d48162225fcdb2d5a3ed65a07baac614ab91432fd4f57","internal_anchors":0},"formal_canon":{"evidence_count":0,"snapshot_sha256":"258153158e38e3291e3d48162225fcdb2d5a3ed65a07baac614ab91432fd4f57"},"author_claims":{"count":0,"strong_count":0,"snapshot_sha256":"258153158e38e3291e3d48162225fcdb2d5a3ed65a07baac614ab91432fd4f57"},"builder_version":"pith-number-builder-2026-05-17-v1"}