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We extend the notion of forward performance criteria to settings with random endowment in incomplete markets. Building on these results, we introduce and develop the novel concept of \textit{forward optimized certainty equivalent (forward…

投资组合管理 · 定量金融 2025-10-29 Gechun Liang , Yifan Sun , Thaleia Zariphopoulou

We consider an investor who wants to select her/his optimal consumption, investment and insurance policies. Motivated by new insurance products, we allow not only the financial marke but also the insurable loss to depend on the regime of…

风险管理 · 定量金融 2014-06-25 Bin Zou , Abel Cadenillas

We study the expected utility maximization problem of a large investor who is allowed to make transactions on tradable assets in an incomplete financial market with endogenous permanent market impacts. The asset prices are assumed to follow…

数理金融 · 定量金融 2026-01-23 Thai Nguyen , Mitja Stadje

We investigate the optimal reinsurance problem in a risk model with jump clustering features. This modeling framework is inspired by the concept initially proposed in Dassios and Zhao (2011), combining Hawkes and Cox processes with shot…

最优化与控制 · 数学 2024-09-23 Claudia Ceci , Alessandra Cretarola

Default risk calculus plays a crucial role in portfolio optimization when the risky asset is under threat of bankruptcy. However, traditional stochastic control techniques are not applicable in this scenario, and additional assumptions are…

投资组合管理 · 定量金融 2023-05-10 José A. Salmerón , Giulia Di Nunno , Bernardo D'Auria

In this paper we study optimal investment when the investor can peek some time units into the future, but cannot fully take advantage of this knowledge because of quadratic transaction costs. In the Bachelier setting with exponential…

数理金融 · 定量金融 2022-05-04 Peter Bank , Yan Dolinsky , Miklós Rásonyi

Fractional stochastic volatility models have been widely used to capture the non-Markovian structure revealed from financial time series of realized volatility. On the other hand, empirical studies have identified scales in stock price…

数理金融 · 定量金融 2019-01-25 Jean-Pierre Fouque , Ruimeng Hu

We solve an expected utility-maximization problem with a Value-at-risk constraint on the terminal portfolio value in an incomplete financial market due to stochastic volatility. To derive the optimal investment strategy, we use the dynamic…

投资组合管理 · 定量金融 2025-05-21 Marcos Escobar-Anel , Yevhen Havrylenko , Rudi Zagst

In an equity market model with "Knightian" uncertainty regarding the relative risk and covariance structure of its assets, we characterize in several ways the highest return relative to the market that can be achieved using nonanticipative…

概率论 · 数学 2012-02-15 Daniel Fernholz , Ioannis Karatzas

We consider a discrete time financial market with proportional transaction costs under model uncertainty, and study a num\'eraire-based semi-static utility maximization problem with an exponential utility preference. The randomization…

数理金融 · 定量金融 2019-08-02 Shuoqing Deng , Xiaolu Tan , Xiang Yu

This paper is concerned with an optimal investment problem under correlated noises in the financial market, and the expected utility functional is hyperbolic absolute risk aversion (HARA) with the exponent $\gamma\neq0$. The problem can be…

最优化与控制 · 数学 2019-07-12 Le Yang , Yueyang Zheng , Jingtao Shi

We consider the problem of optimal portfolio selection under forward investment performance criteria in an incomplete market. The dynamics of the prices of the traded assets depend on a pair of stochastic factors, namely, a slow factor…

数理金融 · 定量金融 2015-09-25 Mykhaylo Shkolnikov , Ronnie Sircar , Thaleia Zariphopoulou

This paper investigates a Stackelberg game between an insurer and a reinsurer under the $\alpha$-maxmin mean-variance criterion. The insurer can purchase per-loss reinsurance from the reinsurer. With the insurer's feedback reinsurance…

投资组合管理 · 定量金融 2023-01-02 Guohui Guan , Zongxia Liang , Yilun Song

This paper considers a utility maximization and optimal asset allocation problem in the presence of a stochastic endowment that cannot be fully hedged through trading in the financial market. After studying continuity properties of the…

投资组合管理 · 定量金融 2022-02-24 Christoph Belak , An Chen , Carla Mereu , Robert Stelzer

We revisit the classical Merton consumption--investment problem when risky-asset returns are modeled by stochastic differential equations interpreted through a general $\alpha$-integral, interpolating between It\^{o}, Stratonovich, and…

数理金融 · 定量金融 2026-02-10 Mario Ayala , Benjamin Vallejo Jiménez

This paper is concerned with one kind of partially observed progressive optimal control problems of coupled forward-backward stochastic systems driven by both Brownian motion and Poisson random measure with risk-sensitive criteria. The…

最优化与控制 · 数学 2025-04-08 Jingtao Lin , Jingtao Shi

We study linear policy approximations for the risk-conscious operation of an industrial energy system with uncertain wind power, significant and variable electricity demand, and high thermal output, as found in a modern foundry. The system…

最优化与控制 · 数学 2025-11-24 Johannes Nicklaus , Lea Brass , Gunnar Schubert

We study the finite horizon Merton portfolio optimization problem in a general local-stochastic volatility setting. Using model coefficient expansion techniques, we derive approximations for the both the value function and the optimal…

计算金融 · 定量金融 2015-06-23 Matthew Lorig , Ronnie Sircar

We consider the optimal investment and marginal utility pricing problem of a risk averse agent and quantify their exposure to a small amount of model uncertainty. Specifically, we compute explicitly the first-order sensitivity of their…

数理金融 · 定量金融 2021-11-15 Jan Obloj , Johannes Wiesel

This memoir presents a systematic study of the utility maximization problem of an investor in a constrained and unbounded financial market. Building upon the work of Hu et al. (2005) [Ann. Appl. Probab., 15, 1691--1712] in a bounded…

概率论 · 数学 2024-10-16 Ying Hu , Gechun Liang , Shanjian Tang