---
title: Hedging Strategy with Transaction Costs
url: https://www.ml-quant.com/papers/ssrn/4990913/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4990913
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4990913
featured: 2024-10-23
citations: unknown
topic: Derivatives & Volatility
---


# Hedging Strategy with Transaction Costs

The traditional binomial model for derivative security pricing is enhanced to include transaction costs, portfolio constraints, and dividend-paying assets, aiming to identify the best hedging strategy.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4990913
- Identifier: SSRN 4990913
- Released: 2024-04-01
- First featured: Quant Letter No. 71 (2024-10-23): https://www.ml-quant.com/issues/2024-10-23/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Derivatives & Volatility

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