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LIQUIDATION OF AN INDIVISIBLE ASSET WITH INDEPENDENT INVESTMENT

LIQUIDATION OF AN INDIVISIBLE ASSET WITH INDEPENDENT INVESTMENT

Abstract We provide an extension of the explicit solution of a mixed optimal stopping–optimal stochastic control problem introduced by Henderson and Hobson. The problem examines whether the optimal investment problem on a local martingale financial market is affected by the optimal liquidation of an independent indivisible asset. The indivisible asset …