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How to price efficiently European options in some geometric Lévy processes models?
Journal article   Peer reviewed

How to price efficiently European options in some geometric Lévy processes models?

François Quittard-Pinon and Rivo Randrianarivony
International Journal of Business, Vol.13(4), pp.301-314
01/10/2008

Abstract

This paper presents the implementation to the class of jump diffusion models of the approach used by Boyarchenko and Levendorskiĭ (2002) in the case of exponential Lévy models. We show that this approach is more computationally efficient than the semi-closed form solutions formerly obtained by Kou (2002). A brand new model is then presented. It extends and generalizes Kou model.
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INCIP_GED_FICJOINT_19458
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