Efficient Numerical Valuation of Continuous Installment Options

Efficient Numerical Valuation of Continuous Installment Options

Year:    2011

Author:    Anton Mezentsev, Anton Pomelnikov, Matthias Ehrhardt

Advances in Applied Mathematics and Mechanics, Vol. 3 (2011), Iss. 2 : pp. 141–164

Abstract

In this work we investigate the novel Kryzhnyi method for the numerical inverse Laplace transformation and apply it to the pricing problem of continuous installment options. We compare the results with the one obtained using other classical methods for the inverse Laplace transformation, like the Euler summation method or the Gaver-Stehfest method.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.4208/aamm.10-m1025

Advances in Applied Mathematics and Mechanics, Vol. 3 (2011), Iss. 2 : pp. 141–164

Published online:    2011-01

AMS Subject Headings:    Global Science Press

Copyright:    COPYRIGHT: © Global Science Press

Pages:    24

Keywords:   

Author Details

Anton Mezentsev

Anton Pomelnikov

Matthias Ehrhardt

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