This paper concerns optimal investment problem with proportional transaction costs and finite time horizon based on exponential utility function. Using a partial differential equation approach, we reveal that the problem is equivalent to a parabolic double obstacle problem involving two free boundaries that correspond to the optimal buying and selling policies. Numerical examples are obtained by the binomial method.
In this article, we introduce the Google＇s method for quality ranking of web page in a formal mathematical format, use the power iteration to improve the PageRank, and also discuss the effect of different q to the PageRank, as well as how a PageRank will be changed if more links are added to one page or removed from some pages.
