A Note on the Valuation of American Option

A Note on the Valuation of American Option

Year:    2003

Journal of Partial Differential Equations, Vol. 16 (2003), Iss. 1 : pp. 29–36

Abstract

American options give holder a right to exercise it at any time at will, the holder should to make the exercise policy in such a way that the expected payoff from the option will be maximized. In this note we prove that it is equivalent to a fact which makes the option value and option delta continuous.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/2003-JPDE-5403

Journal of Partial Differential Equations, Vol. 16 (2003), Iss. 1 : pp. 29–36

Published online:    2003-01

AMS Subject Headings:   

Copyright:    COPYRIGHT: © Global Science Press

Pages:    8

Keywords:    American option