Shadow Price Approximation for the Fractional Black Scholes Model

In this work, we used Tran Hung Thao’s approximation of fractional Brownian motion to approximate the shadow price of the fractional Black Scholes model. In the case to maximize expectation of the utility function in a portfolio optimization problem under transaction cost, the shadow price is approx...

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Bibliographic Details
Main Authors: Dolemweogo Sibiri Narcisse, Béré Frédéric, Nitiéma Pierre Clovis
Format: Article
Language:English
Published: Wiley 2022-01-01
Series:International Journal of Mathematics and Mathematical Sciences
Online Access:http://dx.doi.org/10.1155/2022/4719482
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