Analysis and Modelling of Implied Market Parameters

This dissertation addresses market information extraction from option and zero coupon prices, its representation as contingent claim pricing model parameters, and its application in financial parameters analysis and forecast. We analyse implied volatility estimation sensitivity with respect to disco...

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Bibliographic Details
Main Author: Hin, Lin Yee
Format: Thesis
Language:English
Published: Curtin University 2015
Online Access:http://hdl.handle.net/20.500.11937/208
Description
Summary:This dissertation addresses market information extraction from option and zero coupon prices, its representation as contingent claim pricing model parameters, and its application in financial parameters analysis and forecast. We analyse implied volatility estimation sensitivity with respect to discount rate uncertainty. We develop a strategy to jointly infer implied discount rate and implied volatility from option prices. We infer market information from zero coupon prices in multiple yield curve framework to predict future short rate.