An efficient, and fast convergent algorithm for barrier options

Tian-Shyr Dai*, Yuh Dauh Lyuu

*此作品的通信作者

研究成果: Conference contribution同行評審

2 引文 斯高帕斯(Scopus)

摘要

A barrier option is an option whose payoff depends on whether the price path of the underlying asset ever reaches certain predetermined price levels called the barriers. A single- (double-) barrier option is a barrier option with one (two, respectively) barrier(s). No simple and exact closed-form pricing formula for double-barrier options has been reported in the literature. This paper proposes a novel tree model that can price both single- and double-barrier options efficiently and accurately. This tree model achieves the high efficiency by combinar torial techniques and numerical accuracy by hitting the barriers exactly. Numerical experiments are given to verify the superiority of our method.

原文English
主出版物標題Algorithmic Aspects in Information and Management - Third International Conference, AAIM 2007, Proceedings
發行者Springer Verlag
頁面251-261
頁數11
ISBN(列印)9783540728689
DOIs
出版狀態Published - 2007
事件3rd International Conference on Algorithmic Aspects in Information and Management, AAIM 2007 - Portland, OR, 美國
持續時間: 6 6月 20078 6月 2007

出版系列

名字Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
4508 LNCS
ISSN(列印)0302-9743
ISSN(電子)1611-3349

Conference

Conference3rd International Conference on Algorithmic Aspects in Information and Management, AAIM 2007
國家/地區美國
城市Portland, OR
期間6/06/078/06/07

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