A Comparative Study of Pricing Option with Efficient Methods
Keyword(s):
Our main objective of this paper is to introduce four individual techniques of pricing options; the techniques are Binomial method, Trinomial method, Monte Carlo simulation and Black-Scholes-Merton model. Because they play a significant role in option valuation of stock price dynamics, risk managements as well as stock market. In this paper, we briefly discuss all these four methods with their properties and behavior. We also focused on numerical technique for the higher accuracy of option pricing and compare them graphically. We use the Computer Algebra System (CAS) Python (Edition 2019.3.1) for this purpose. GUB JOURNAL OF SCIENCE AND ENGINEERING, Vol 7, Dec 2020 P 1-7
THE PRICING OF EXOTIC OPTIONS BY MONTE–CARLO SIMULATIONS IN A LÉVY MARKET WITH STOCHASTIC VOLATILITY
2003 ◽
Vol 06
(08)
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pp. 839-864
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Keyword(s):
A Comparative Analysis of the Black-Scholes- Merton Model and the Heston Stochastic Volatility Model
2019 ◽
Vol 39
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pp. 127-140
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2004 ◽
Vol 07
(05)
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pp. 591-614
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2007 ◽
Vol 251
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pp. 2522-2536
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2017 ◽
Vol 64
(2)
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pp. 155-170
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2011 ◽
Vol 291-294
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pp. 2183-2188
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