Optimal Selling of an Asset under Incomplete Information

Figure 1

The optimal stopping boundary (𝑋₀/Φ^𝛽₀)𝑒^𝜀𝑡𝑏^𝛽(𝑡), a simulated path of the asset price 𝑋, and the optimal stopping time 𝜏^∗. We used the parameter values 𝜎=0.3, 𝜇_ℎ=0.5, 𝜇_𝑙=−0.3, 𝑟=0.1, 𝑇=0.5, 𝑋₀=10, Π₀=0.5.