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expected utility |
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Before prospect theory, individual decision behavior was explained and predicted by expected utility theory (Von Neumann & Morgenstern, 1944). The model assumes that the price of the underlying stock evolves according to a binomial process and that exercise decisions are made so as to maximize the expected utility of the option holder's terminal wealth. Except for the historical information contained herein, the matters set forth in this press release, including the expected utility of Incyte's 11beta-HSD1 inhibitor, INCB13739, and the expected plans and timing for Phase I and Phase IIa trials for INCB13739, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. |
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