Financial/Actuarial Mathematics Seminar

September 24, 2009



Impulse control and portfolio optimization with general transaction cost.

Qingshuo Song

Department of Mathematics, University of Michigan

September 24, 2009



Abstract

In this paper we study an optimal portfolio selection problem under general transaction cost. The problem is reduced to an impulse control problem with sub-additive transaction costs. We show that the optimal strategy exists and the number of trading times has finite expectation. The result covers the transaction costs possibly without fixed cost components.
This is a joint work with Jin Ma, Jing Xu, and Jianfeng Zhang.


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