A binomial lattice based framework for the analysis of finite investment options with finite operational phase is developed. Solutions for European and American type finite horizon investment options with optimal capital structure and a multi-stage investment setting with multiple debt issues are discussed. The analysis shows that optimal leverage ratios are not affected by option moneyness at ...

In this paper, the study attempts to determine the optimal capital investment in setup cost reduction and optimal lot sizing policies for an economic order quantity (EOQ) model with random yields. The setup cost is treated as the function of capital expenditure in technology. The study shows that the expected total annual cost functions with capital investment is convex and develop a solution p...

Dual risk models are popular for modeling a venture capital or high-tech company, which the running cost is deterministic and profits arrive stochastically over time. Most of existing literature on dual concentrates optimal dividend strategies. In this paper, we propose to study investment strategy research development minimize ruin probability underlying company. We will also optimization prob...