English

A dynamic version of the super-replication theorem under proportional transaction costs

Mathematical Finance 2021-07-07 v1 Probability

Abstract

We extend the super-replication theorems of [27] in a dynamic setting, both in the num\'eraire-based as well as in the num\'eraire-free setting. For this purpose, we generalize the notion of admissible strategies. In particular, we obtain a well-defined super-replication price process, which is right-continuous under some regularity assumptions.

Keywords

Cite

@article{arxiv.2107.02628,
  title  = {A dynamic version of the super-replication theorem under proportional transaction costs},
  author = {Francesca Biagini and Thomas Reitsam},
  journal= {arXiv preprint arXiv:2107.02628},
  year   = {2021}
}