In this paper, irrational exercise behavior of the buyer of an American put is characterized by a single parameter. We model irrational exercise rules as the first jump time of a point processes with stochastic intensity. By the rationality parameter, we parameterize a family of stochastic...

In this paper, irrational exercise behavior of the buyer of an American put is characterized by a single parameter. We model irrational exercise rules as the first jump time of a point processes with stochastic intensity. By the rationality parameter, we parameterize a family of stochastic...

In this paper, we classify the linear second order partial differential equations. We will show that there are three types of partial differential equations hyperbolic, elliptic and parabolic. We are study hyperbolic equations and the type of equation will turn out to be decisive in establishing...