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Pricing European Call Option in Scott’s Stochastic Volatility Model
Mälardalen University. Mälardalen University, School of Education, Culture and Communication.
Mälardalen University. Mälardalen University, School of Education, Culture and Communication.
2010 (English)Independent thesis Advanced level (degree of Master (Two Years)), 80 credits / 120 HE creditsStudent thesis
Abstract [en]

In this paper, we derive pricing equations for the European call option under Scott’s stochastic volatility model and achieve a price for the European call option by creating a JAVA applet.  Through certain times of simulating we can observe the tendency of the options price, as a result, which it can provide the necessary data for implementing the optimal strategies of investment.

Place, publisher, year, edition, pages
2010. , p. 46
Identifiers
URN: urn:nbn:se:mdh:diva-9847OAI: oai:DiVA.org:mdh-9847DiVA, id: diva2:325599
Presentation
2010-06-18, R-3-121, 13:15 (English)
Uppsok
Physics, Chemistry, Mathematics
Supervisors
Available from: 2010-06-21 Created: 2010-06-18 Last updated: 2010-06-21Bibliographically approved

Open Access in DiVA

MASTER THESIS IN APPLIED MATHEMATICS(1185 kB)669 downloads
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Type fulltextMimetype application/pdf

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Mälardalen UniversitySchool of Education, Culture and Communication

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CiteExportLink to record
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  • apa
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  • nn-NB
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  • Other locale
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