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Coskun Cetin

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Papers by Coskun Cetin

Research paper thumbnail of Approximate Moment Functions for Logistic Stochastic Differential Equations

Research Square (Research Square), Aug 10, 2023

Research paper thumbnail of Delegated Dynamic Portfolio Management under Mean-Variance Preferences

Social Science Research Network, Mar 27, 2007

Research paper thumbnail of Semi-implicit split-step numerical methods for a class of nonlinear stochastic differential equations with non-Lipschitz drift terms

Journal of Computational and Applied Mathematics, Dec 1, 2018

Research paper thumbnail of Strong convergence of semi-implicit split-step methods for SDE with locally Lipschitz coefficients

Communications in Nonlinear Science and Numerical Simulation, Mar 1, 2021

Research paper thumbnail of Optimal acquisition of a partially hedgeable house

Mathematics and Financial Economics, Nov 26, 2014

Research paper thumbnail of Perturbed Linear-Quadratic Control Problems and Their Probabilistic Representations

arXiv (Cornell University), Dec 30, 2012

Research paper thumbnail of Backward stochastic differential equations with quadratic growth and their applications

Research paper thumbnail of Uniqueness of solutions to certain Markovian backward stochastic differential equations, arXiv

Research paper thumbnail of Strong convergence of semi-implicit split-step methods for SDE with locally Lipschitz coefficients

Communications in Nonlinear Science and Numerical Simulation, 2021

Research paper thumbnail of Milstein-type semi-implicit split-step numerical methods for nonlinear stochastic differential equations with locally Lipschitz drift terms

Thermal Science, 2018

We develop Milstein-type versions of semi-implicit split-step methods for numerical solutions of ... more We develop Milstein-type versions of semi-implicit split-step methods for numerical solutions of non-linear stochastic differential equations with locally Lipschitz coefficients. Under a one-sided linear growth condition on the drift term, we obtain some moment estimates and discuss convergence properties of these numerical methods. We compare the performance of multiple methods, including the backward Milstein, tamed Milstein, and truncated Milstein procedures on non-linear stochastic differential equations including generalized stochastic Ginzburg-Landau equations. In particular, we discuss their empirical rates of convergence.

Research paper thumbnail of Delegated dynamic portfolio management under mean-variance preferences

Journal of Applied Mathematics and Decision Sciences, 2006

We consider a complete financial market with deterministic parameters where an investor and a fun... more We consider a complete financial market with deterministic parameters where an investor and a fund manager have mean-variance preferences. The investor is allowed to borrow with risk-free rate and dynamically allocate his wealth in the fund provided his holdings stay nonnegative. The manager gets proportional fees instantaneously for her management services. We show that the manager can eliminate all her risk, at least in the constant coefficients case. Her own portfolio is a proportion of the amount the investor holds in the fund. The equilibrium optimal strategies are independent of the fee rate although the portfolio of each agent depends on it. An optimal fund weight is obtained by the numerical solution of a nonlinear equation and is not unique in general. In one-dimensional case, the investor's risk is inversely proportional to the weight of the risky asset in the fund. We also generalize the problem to the case of multiple managers and provide some examples.

Research paper thumbnail of Some moment estimates for new semi-implicit split-step methods

AIP Conference Proceedings, 2017

In this work, we introduce alternative numerical procedures based on a combination of split-step ... more In this work, we introduce alternative numerical procedures based on a combination of split-step and partially implicit methods to solve a class of nonlinear stochastic differential equation that arise from certain physical and financial applications. Considering certain monotonicity and polynomial growth conditions, we focus on the moment estimates of both the actual and the numerical solutions of a generalized version of stochastic Ginzburg-Landau equations.

Research paper thumbnail of Perturbed Linear-Quadratic Control Problems and Their Probabilistic Representations

Research paper thumbnail of Uniqueness of Solutions for Certain Markovian Backward StochasticDifferential Equations

Research paper thumbnail of Optimal Acquisition of a Partially Hedgeable House

SSRN Electronic Journal, 2009

Research paper thumbnail of Asymmetric Information, Dynamic Information Production and Initial Public Offerings

SSRN Electronic Journal, 2009

ABSTRACT This paper presents an information-theoretic model of IPO pricing in the presence of adv... more ABSTRACT This paper presents an information-theoretic model of IPO pricing in the presence of adverse selection and multiple trading periods. Initially investors produce information to reduce the information asymmetry and are compensated by the owner-manager. Some new investors enter and all investors engage in further information production in the subsequent periods as new information arrives to the market but the owner manager does not compensate any more. By incorporating future uncertainty and subsequent information revelation, the model is able to explain not only why firms going public are underpriced but also why, on average, they underperform in the long run. We use Linear Programming approach to obtain the optimal proportion of shares to be sold in subsequent periods and provide some numerical examples.

Research paper thumbnail of Semi-implicit split-step numerical methods for a class of nonlinear stochastic differential equations with non-Lipschitz drift terms

Journal of Computational and Applied Mathematics, 2018

Research paper thumbnail of Approximate Moment Functions for Logistic Stochastic Differential Equations

Research Square (Research Square), Aug 10, 2023

Research paper thumbnail of Delegated Dynamic Portfolio Management under Mean-Variance Preferences

Social Science Research Network, Mar 27, 2007

Research paper thumbnail of Semi-implicit split-step numerical methods for a class of nonlinear stochastic differential equations with non-Lipschitz drift terms

Journal of Computational and Applied Mathematics, Dec 1, 2018

Research paper thumbnail of Strong convergence of semi-implicit split-step methods for SDE with locally Lipschitz coefficients

Communications in Nonlinear Science and Numerical Simulation, Mar 1, 2021

Research paper thumbnail of Optimal acquisition of a partially hedgeable house

Mathematics and Financial Economics, Nov 26, 2014

Research paper thumbnail of Perturbed Linear-Quadratic Control Problems and Their Probabilistic Representations

arXiv (Cornell University), Dec 30, 2012

Research paper thumbnail of Backward stochastic differential equations with quadratic growth and their applications

Research paper thumbnail of Uniqueness of solutions to certain Markovian backward stochastic differential equations, arXiv

Research paper thumbnail of Strong convergence of semi-implicit split-step methods for SDE with locally Lipschitz coefficients

Communications in Nonlinear Science and Numerical Simulation, 2021

Research paper thumbnail of Milstein-type semi-implicit split-step numerical methods for nonlinear stochastic differential equations with locally Lipschitz drift terms

Thermal Science, 2018

We develop Milstein-type versions of semi-implicit split-step methods for numerical solutions of ... more We develop Milstein-type versions of semi-implicit split-step methods for numerical solutions of non-linear stochastic differential equations with locally Lipschitz coefficients. Under a one-sided linear growth condition on the drift term, we obtain some moment estimates and discuss convergence properties of these numerical methods. We compare the performance of multiple methods, including the backward Milstein, tamed Milstein, and truncated Milstein procedures on non-linear stochastic differential equations including generalized stochastic Ginzburg-Landau equations. In particular, we discuss their empirical rates of convergence.

Research paper thumbnail of Delegated dynamic portfolio management under mean-variance preferences

Journal of Applied Mathematics and Decision Sciences, 2006

We consider a complete financial market with deterministic parameters where an investor and a fun... more We consider a complete financial market with deterministic parameters where an investor and a fund manager have mean-variance preferences. The investor is allowed to borrow with risk-free rate and dynamically allocate his wealth in the fund provided his holdings stay nonnegative. The manager gets proportional fees instantaneously for her management services. We show that the manager can eliminate all her risk, at least in the constant coefficients case. Her own portfolio is a proportion of the amount the investor holds in the fund. The equilibrium optimal strategies are independent of the fee rate although the portfolio of each agent depends on it. An optimal fund weight is obtained by the numerical solution of a nonlinear equation and is not unique in general. In one-dimensional case, the investor's risk is inversely proportional to the weight of the risky asset in the fund. We also generalize the problem to the case of multiple managers and provide some examples.

Research paper thumbnail of Some moment estimates for new semi-implicit split-step methods

AIP Conference Proceedings, 2017

In this work, we introduce alternative numerical procedures based on a combination of split-step ... more In this work, we introduce alternative numerical procedures based on a combination of split-step and partially implicit methods to solve a class of nonlinear stochastic differential equation that arise from certain physical and financial applications. Considering certain monotonicity and polynomial growth conditions, we focus on the moment estimates of both the actual and the numerical solutions of a generalized version of stochastic Ginzburg-Landau equations.

Research paper thumbnail of Perturbed Linear-Quadratic Control Problems and Their Probabilistic Representations

Research paper thumbnail of Uniqueness of Solutions for Certain Markovian Backward StochasticDifferential Equations

Research paper thumbnail of Optimal Acquisition of a Partially Hedgeable House

SSRN Electronic Journal, 2009

Research paper thumbnail of Asymmetric Information, Dynamic Information Production and Initial Public Offerings

SSRN Electronic Journal, 2009

ABSTRACT This paper presents an information-theoretic model of IPO pricing in the presence of adv... more ABSTRACT This paper presents an information-theoretic model of IPO pricing in the presence of adverse selection and multiple trading periods. Initially investors produce information to reduce the information asymmetry and are compensated by the owner-manager. Some new investors enter and all investors engage in further information production in the subsequent periods as new information arrives to the market but the owner manager does not compensate any more. By incorporating future uncertainty and subsequent information revelation, the model is able to explain not only why firms going public are underpriced but also why, on average, they underperform in the long run. We use Linear Programming approach to obtain the optimal proportion of shares to be sold in subsequent periods and provide some numerical examples.

Research paper thumbnail of Semi-implicit split-step numerical methods for a class of nonlinear stochastic differential equations with non-Lipschitz drift terms

Journal of Computational and Applied Mathematics, 2018

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