Benefits of Fluctuating Exchange Rates on the Investor’s Wealth

Obonye Doctor and Edward M. Lungu

Journal of Applied Mathematics, 2022, vol. 2022, issue 1

Abstract: We consider a problem of maximizing the utility of an agent who invests in a stock and a money market account incorporating proportional transaction costs (λ > 0) and foreign exchange rate fluctuations. Assuming a HARA utility function U(c) = cp/p for all c ≥ 0, p

Date: 2022
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https://doi.org/10.1155/2022/5595610

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Persistent link: https://EconPapers.repec.org/RePEc:wly:jnljam:v:2022:y:2022:i:1:n:5595610

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