In this paper, we introduce a valuation model of callable warrants under a setting of the optimal stopping problem between the holder (investor) and the issuer (firm). A warrant is the right to purchase new shares at a predetermined price. When the new stocks are issued, the value of the stock...

In this paper we consider a dynamic pricing model for a firm knowing that a competitor adopts a static pricing strategy. We establish a continuous time model to analyze the effect of dynamic pricing on the improvement in expected revenue in the duopoly. We assume that customers arrive to...