MATHEMATICAL MODELING & METHODS OF OPT..

MATHEMATICAL MODELING & METHODS OF OPT..

Autor: Lishang Jiang
Verlag: World Scientific Publishing Company
Erscheinungsdatum: 2005
ISBN: 9813106557

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From the unique perspective of partial differential equations (PDE), this self-contained book presents a systematic, advanced introduction to the Black-Scholes-Merton's option pricing theory.

A unified approach is used to model various types of option pricing as PDE problems, to derive pricing formulas as their solutions, and to design efficient algorithms from the numerical calculation of PDEs. In particular, the qualitative and quantitative analysis of American option pricing is treated based on free boundary problems, and the implied volatility as an inverse problem is solved in the optimal control framework of parabolic equations.

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