Transforming Arithmetic Asian Option PDE to the Parabolic Equation with Constant Coefficients

Arithmetic Asian options are difficult to price and hedge, since at present, there is no closed-form analytical solution to price them. Transforming the PDE of the arithmetic the Asian option to a heat equation with constant coefficients is found to be difficult or impossible. Also, the numerica...

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Bibliographic Details
Main Authors: Zieneb Ali Elshegmani, Rokiah Rozita Ahmad, Saiful Hafiza Jaaman, Roza Hazli Zakaria
Format: Article
Language:English
Published: Wiley 2011-01-01
Series:International Journal of Mathematics and Mathematical Sciences
Online Access:http://dx.doi.org/10.1155/2011/401547
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