Carlos Pacheco-Gonzalez

  1. Optimal execution of Portfolio transactions with geometric price process.

    Authors: Gerardo Hernandez-del-Valle, Carlos Pacheco-Gonzalez
    Subjects: Portfolio Management
    Abstract

    In this paper we derive the optimal execution trajectory for a trader who
    wishes to buy or sell a large position of shares which evolve as a geometric
    Brownian process in contrast to the arithmetic model which prevails in the
    existing literature, and with a general temporary impact $h$. We provide a
    couple of examples which illustrate the results. We would like to stress the
    fact that in this paper we use understandable user-friendly techniques.

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