English

Optimal double stopping of a Brownian bridge

Optimization and Control 2014-12-10 v2 Mathematical Finance

Abstract

We study optimal double stopping problems driven by a Brownian bridge. The objective is to maximize the expected spread between the payoffs achieved at the two stopping times. We study several cases where the solutions can be solved explicitly by strategies of threshold type.

Keywords

Cite

@article{arxiv.1409.2226,
  title  = {Optimal double stopping of a Brownian bridge},
  author = {Erik J. Baurdoux and Nan Chen and Budhi A. Surya and Kazutoshi Yamazaki},
  journal= {arXiv preprint arXiv:1409.2226},
  year   = {2014}
}