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We describe the solution of an optimal stopping problem for a stable L\'evy process killed at state-dependent rate, which can be seen as a model for bankruptcy. The killing rate is chosen in such a way that the killed process remains…

Probability · Mathematics 2024-02-29 K. van Schaik , A. R. Watson , X. Xu

We characterize the value function and the optimal stopping time for a large class of optimal stopping problems where the underlying process to be stopped is a fairly general Markov process. The main result is inspired by recent findings…

Probability · Mathematics 2012-04-03 Sören Christensen , Paavo Salminen , Bao Quoc Ta

This paper concerns optimal stopping problems driven by the running maximum of a spectrally negative L\'{e}vy process $X$. More precisely, we are interested in modifications of the Shepp-Shiryaev optimal stopping problem [Avram, Kyprianou…

Probability · Mathematics 2013-12-04 Curdin Ott

Previous authors have considered optimal stopping problems driven by the running maximum of a spectrally negative L\'evy process $X$, as well as of a one-dimensional diffusion. Many of the aforementioned results are either implicitly or…

Probability · Mathematics 2021-06-25 Mine Caglar , Andreas E. Kyprianou , Ceren Vardar-Acar

This paper studies an optimal stopping problem for L\'evy processes. We give a justification of the form of the Snell envelope using standard results of optimal stopping. We also justify the convexity of the value function, and without a…

Probability · Mathematics 2008-12-18 Diana Dorobantu

We consider the optimal stopping problem consisting in, given a strong Markov process, a reward function and a discount rate, finding the stopping time such that the expected reward at the stopping time is maximum. The approach we follow,…

Probability · Mathematics 2014-05-30 Fabián Crocce

We establish a systematic solution method for optimal stopping problems of spectrally negative L\'evy processes. Our approach relies essentially on the potential theory, in particular the Riesz decomposition and the maximum principle. Using…

Optimization and Control · Mathematics 2026-02-25 Masahiko Egami , Tomohiro Koike

This article treats both discrete time and continuous time stopping problems for general Markov processes on the real line with general linear costs. Using an auxiliary function of maximum representation type, conditions are given to…

Probability · Mathematics 2020-01-28 Sören Christensen , Tobias Sohr

In this paper we study the optimal stopping problem for L\'evy processes studied by Novikov and Shiryayev, Stochastics, 2007 In particular, we are interested in finding the representing measure of the value function. It is seen that that…

Probability · Mathematics 2010-02-22 Paavo Salminen

We consider a class of infinite-time horizon optimal stopping problems for spectrally negative Levy processes. Focusing on strategies of threshold type, we write explicit expressions for the corresponding expected payoff via the scale…

Optimization and Control · Mathematics 2013-05-03 Masahiko Egami , Kazutoshi Yamazaki

Infinite horizon optimal stopping problems for a L\'evy processes with a two-sided reward function are considered. A two-sided verification theorem is presented in terms of the overall supremum and the overall infimum of the process. A…

Probability · Mathematics 2019-12-18 Ernesto Mordecki , Facundo Oliú Eguren

This paper deals with the optimal stopping problem under partial observation for piecewise-deterministic Markov processes. We first obtain a recursive formulation of the optimal filter process and derive the dynamic programming equation of…

Probability · Mathematics 2013-05-28 Adrien Brandejsky , Benoîte de Saporta , François Dufour

This paper is concerned with the solution of the optimal stopping problem associated to the valuation of Perpetual American options driven by continuous time Markov chains. We introduce a new dynamic approach for the numerical pricing of…

Probability · Mathematics 2019-04-25 Laurent Miclo , Stéphane Villeneuve

This article treats long term average impulse control problems with running costs in the case that the underlying process is a L\'evy process. Under quite general conditions we characterize the value of the control problem as the value of a…

Probability · Mathematics 2020-05-15 Sören Christensen , Tobias Sohr

Consider the discounted optimal stopping problem for a real valued Markov process with only positive jumps. We provide a theorem to verify that the optimal stopping region has the form {x >= x^*} for some critical threshold x^*, and a…

Probability · Mathematics 2024-11-14 Fabian Crocce , Ernesto Mordecki

In this paper we prove the existence of weak martingale solutions to the stochastic Navier-Stokes Equations driven by pure jump L\'evy processes. Our proof consists of two parts. In the first one, mostly classical, we recall a priori…

Probability · Mathematics 2025-06-02 Zdzisław Brzeźniak , Tomasz Kosmala , Elżbieta Motyl , Paul Razafimandimby

This paper presents a derivation of the explicit price for the perpetual American put option time-capped by the first drawdown epoch beyond a predefined level. We consider the market in which an asset price is described by geometric L\'evy…

Probability · Mathematics 2025-09-01 Zbigniew Palmowski , Paweł Stȩpniak

In the literature on optimal stopping, the problem of maximizing the expected discounted reward over all stopping times has been explicitly solved for some special reward functions (including $(x^+)^{\nu}$, $(e^x-K)^+$, $(K-e^{-x})^+$,…

Probability · Mathematics 2017-10-13 Yi-Shen Lin , Yi-Ching Yao

In this paper, we solve explicitly the optimal stopping problem with random discounting and an additive functional as cost of observations for a regular linear diffusion. We also extend the results to the class of one-sided regular Feller…

Probability · Mathematics 2012-11-06 Mamadou Cissé , Pierre Patie , Etienne Tanré

In this Note we study optimal stopping problems for strong Markov processes and affine functions. We give a justification of the Snell envelope form using standard results of optimal stopping. We also justify the convexity of the value…

Probability · Mathematics 2008-12-18 Diana Dorobantu
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