We use a white noise approach to study the problem of optimal insider control of a stochastic delay equation driven by a Brownian motion B and a Poisson random measure N. In particular, we use Hida-Malliavin calculus and the Donsker delta functional to study the problem. We establish a sufficient and a necessary maximum principle for the optimal control when the trader from the beginning has inside information about the future value of some random variable related to the system. These results are applied to the problem of optimal inside harvesting control in a population modelled by a stochastic delay equation. Next, we apply a direct white noise method to find the logarithmic utility optimal insider portfolio in a generalized Black-Scholes type financial market. A classical result of Pikovski and Karatzas shows that when the inside information is , where T is the terminal time of the trading period, then the market is not viable, i.e. the maximal utility is infinite. We consider two extensions to delay of this result and prove the following:
If the risky asset price is given by a stochastic delay equation, the resulting insider market is still not viable.
If, however, there is delay in the information flow to the insider, the market becomes viable.
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