fast fourier transform based power option pricing with stochastic interest rate, volatility, and jump intensity

Clicks: 117
ID: 166543
2013
Article Quality & Performance Metrics
Overall Quality
Not rated
Combines reader engagement with the AI quality analysis. This article has not been analysed, so there is no overall score — reader engagement is measured and shown alongside.
AI Quality Assessment
Not analyzed
Readership in this journal
Steady

Ranked #147 of 357 articles by views in Chemico-biological interactions

Most read Least read

Bar heights use a square-root scale. Only the 120 most-read articles are drawn; the journal has 357 in total.

Mint this article as an NFT
Not yet minted

Create a permanent, verifiable on-chain record of this article on the Scimatic Network. The NFT is held in your Journament account, and you can withdraw it to your own wallet at any time.

5 SUSD one-off · no wallet required
Abstract
Firstly, we present a more general and realistic double-exponential jump model with stochastic volatility, interest rate, and jump intensity. Using Feynman-Kac formula, we obtain a partial integrodifferential equation (PIDE), with respect to the moment generating function of log underlying asset price, which exists an affine solution. Then, we employ the fast Fourier Transform (FFT) method to obtain the approximate numerical solution of a power option which is conveniently designed with different risks or prices. Finally, we find the FFT method to compute that our option price has better stability, higher accuracy, and faster speed, compared to Monte Carlo approach.
Reference Key
huang2013journalfast Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors ;Jiexiang Huang;Wenli Zhu;Xinfeng Ruan
Journal Chemico-biological interactions
Year 2013
DOI
10.1155/2013/875606
URL
Keywords

Citations

No citations found. To add a citation, contact the admin at info@scimatic.org

No comments yet. Be the first to comment on this article.