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Customer Valuation with Option Pricing Framework

The article introduces a new method for evaluating customer value using a continuous-time option pricing framework, suggesting marketing costs are irreversible investments dependent on uncertain profit margins, a departure from the traditional discounted cash flow approach.

Featured in No. 64 on 5 Sep 2024 · 36 days after release

Released
31 Jul 2024
First featured
No. 64 · 5 Sep 2024
Published in
Not yet, as far as Semantic Scholar knows
Shares when featured
4
Identifier
SSRN 4942246

Citations and venue from Semantic Scholar (ODC-BY), refreshed weekly. Summary: Quant Letter (CC BY 4.0).

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