The paper deals with the optimal behavior of an individual whose aim is to maximize total expected discunted utility of consumption subject to a nonterminal bankruptcy. This means that upon going bankrupt, the individual may recover from it after a temporary but random sojourn in bankruptcy.This...

In this paper, first we study a stochastic volatility market model for which an explicit candidate solution to the problem of maximizing utility function of terminal wealth is obtained. Applying this result, we present a complete solution for the Heston model which is a particular case of the...