Optimal Timing to Purchase Options

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Optimal Timing to Purchase Options

We study the optimal timing of derivative purchases in incomplete markets. In our model, an investor attempts to maximize the spread between her model price and the offered market price through optimally timing her purchase. Both the investor and the market value the options by risk-neutral expectations but under different equivalent martingale measures representing different market views. The ...

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ژورنال

عنوان ژورنال: SIAM Journal on Financial Mathematics

سال: 2011

ISSN: 1945-497X

DOI: 10.1137/100809386