Pricing Asian Options for Jump Diffusions

dc.creatorBayraktar, Erhan
dc.creatorXing, Hao
dc.date2007-07-17
dc.date2008-10-29
dc.date.accessioned2026-07-07T10:13:30Z
dc.date.available2026-07-07T10:13:30Z
dc.descriptionWe construct a sequence of functions that uniformly converge (on compact sets) to the price of Asian option, which is written on a stock whose dynamics follows a jump diffusion, exponentially fast. Each of the element in this sequence solves a parabolic partial differen- tial equation (not an integro-differential equation). As a result we obtain a fast numerical approximation scheme whose accuracy versus speed characteristics can be controlled. We analyze the performance of our numerical algorithm on several examples.
dc.descriptionKey Words: Pricing Asian Options, Jump diffusions, an Iterative Numerical Scheme, Classical Solutions of Integro-PDEs
dc.identifierhttps://arxiv.org/abs/0707.2432
dc.identifierhttp://arxiv.org/abs/0707.2432
dc.identifier.urihttp://salesiana.dossiersoluciones.com/handle/123456789/172550
dc.subjectComputational Engineering, Finance, and Science
dc.titlePricing Asian Options for Jump Diffusions
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