English

Merton Investment Problems in Finance and Insurance for the Hawkes-based Models

Portfolio Management 2021-05-04 v2

Abstract

We show how to solve Merton optimal investment stochastic control problem for Hawkes-based models in finance and insurance, i.e., for a wealth portfolio X(t) consisting of a bond and a stock price described by general compound Hawkes process (GCHP), and for a capital R(t) of an insurance company with the amount of claims described by the risk model based on GCHP. The novelty of the results consists of the new Hawkes-based models and in the new optimal investment results in finance and insurance for those models.

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Cite

@article{arxiv.2104.02694,
  title  = {Merton Investment Problems in Finance and Insurance for the Hawkes-based Models},
  author = {Anatoliy Swishchuk},
  journal= {arXiv preprint arXiv:2104.02694},
  year   = {2021}
}

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12 pages