Mathematical Models and Numerical Methods for Pricing Options on Investment Projects under Uncertainties

In this work, we focus on establishing partial differential equation (PDE) models for pricing flexibility options on investment projects under uncertainties and numerical methods for solving these models. we develop a finite difference method and an advanced fitted finite volume scheme and combine w...

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Bibliographic Details
Main Author: Li, Nan
Format: Thesis
Published: Curtin University 2020
Online Access:http://hdl.handle.net/20.500.11937/83866
Description
Summary:In this work, we focus on establishing partial differential equation (PDE) models for pricing flexibility options on investment projects under uncertainties and numerical methods for solving these models. we develop a finite difference method and an advanced fitted finite volume scheme and combine with an interior penalty method, as well as their convergence analyses, to solve the PDE and LCP models developed. The MATLAB program is for implementing testing the models of numerical algorithms developed.