Query:
faculty: "FEB" and publication year: "2011"
| Authors | O.E. Goettsche, M.H. Vellekoop | | Title | The early exercise premium for the American put under discrete dividends |
| Journal | Mathematical Finance |
| Volume | 21 |
| Year | 2011 |
| Issue | 2 |
| Pages | 335-354 |
| ISSN | 09601627 |
| Faculty | Faculty of Economics and Business |
| Institute/dept. | FEB: Research Institute in Economics and Econometrics Amsterdam (RESAM) |
| Abstract | We derive an integral equation for the early exercise boundary of an American put option under Black–Scholes dynamics with discrete dividends at fixed times during the lifetime of the option. Our result is a generalization of the results obtained by Carr, Jarrow, and Myneni; Jacka; and Kim for the case without discrete dividends, and it requires a careful study of Snell envelopes for semimartingales with discontinuities. |
| Document type | Article |
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