Acta mathematica scientia,Series A

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Optimal Portfolio in a Fractional Black-Scholes Model with Arbitrary Hurst Parameter

Liu Shaoyue; Yang Xiangqun   

  1. (Department of Mathematics, Xiangtan University, Xiangtan 411105)

  • Received:2006-01-17 Revised:2007-12-12 Online:2008-08-25 Published:2008-08-25

Abstract:

Based on the mathematical model for a Black-Scholes market driven by frctional Brownian motion BH(t) with arbitrary Hurst parameter H ∈ (0,1), The authors solve the optimal portfolio problem in such a market for an agent with utility functions of power type by using quansi-conditional expectation and the stochastic-gradient.

Key words: Fractional Brownian motion, Black-Scholes model, Optimal porfolio

CLC Number: 

  • 90A12
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