Review of Option Pricing Literature and An Online Real-Time Option Pricing Application Development

The dissertation seeks to have an exploration into the most commonly used option pricing models. As we will see in the second chapters, the classic Black-Scholes model, the Jump Diffusion Model, Binomial Tree model, Monte-Carlo valuation and Finite Difference Method are widely used in option pricing...

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Main Author: Liu, Shu
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2007
Subjects:
Online Access:https://eprints.nottingham.ac.uk/21517/
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author Liu, Shu
author_facet Liu, Shu
author_sort Liu, Shu
building Nottingham Research Data Repository
collection Online Access
description The dissertation seeks to have an exploration into the most commonly used option pricing models. As we will see in the second chapters, the classic Black-Scholes model, the Jump Diffusion Model, Binomial Tree model, Monte-Carlo valuation and Finite Difference Method are widely used in option pricing. A significant number of empirical evidences in literature tested the validity of the models based on the historical data, rarely are based on the real-time data. This dissertation aims to combine the computational knowledge and option pricing literature, to investigate, design and implement a new option pricing application, which can process the real-time or slightly delayed market quotes to price the options. The application could help researchers to test the accuracy of the pricing model or their input volatility, and also can help investor to compare the market with the estimated price to discover the best investment moment. The discussion, methodology and testing are focused on the computational finance joint issues.
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format Dissertation (University of Nottingham only)
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institution University of Nottingham Malaysia Campus
institution_category Local University
language English
last_indexed 2025-11-14T18:41:36Z
publishDate 2007
recordtype eprints
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spelling nottingham-215172018-02-17T00:17:46Z https://eprints.nottingham.ac.uk/21517/ Review of Option Pricing Literature and An Online Real-Time Option Pricing Application Development Liu, Shu The dissertation seeks to have an exploration into the most commonly used option pricing models. As we will see in the second chapters, the classic Black-Scholes model, the Jump Diffusion Model, Binomial Tree model, Monte-Carlo valuation and Finite Difference Method are widely used in option pricing. A significant number of empirical evidences in literature tested the validity of the models based on the historical data, rarely are based on the real-time data. This dissertation aims to combine the computational knowledge and option pricing literature, to investigate, design and implement a new option pricing application, which can process the real-time or slightly delayed market quotes to price the options. The application could help researchers to test the accuracy of the pricing model or their input volatility, and also can help investor to compare the market with the estimated price to discover the best investment moment. The discussion, methodology and testing are focused on the computational finance joint issues. 2007 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/21517/1/07MSCitxsl6.pdf Liu, Shu (2007) Review of Option Pricing Literature and An Online Real-Time Option Pricing Application Development. [Dissertation (University of Nottingham only)] (Unpublished) computational finance finance option option pricing stock option computational Black Scholes application web website optionAAA.com www.optionAAA.com real-time delayed online computer computing programming php development software review literature literature review binomial Monte-Carlo
spellingShingle computational finance
finance
option
option pricing
stock option
computational
Black Scholes
application
web
website
optionAAA.com
www.optionAAA.com
real-time
delayed
online
computer
computing
programming
php
development
software
review
literature
literature review
binomial
Monte-Carlo
Liu, Shu
Review of Option Pricing Literature and An Online Real-Time Option Pricing Application Development
title Review of Option Pricing Literature and An Online Real-Time Option Pricing Application Development
title_full Review of Option Pricing Literature and An Online Real-Time Option Pricing Application Development
title_fullStr Review of Option Pricing Literature and An Online Real-Time Option Pricing Application Development
title_full_unstemmed Review of Option Pricing Literature and An Online Real-Time Option Pricing Application Development
title_short Review of Option Pricing Literature and An Online Real-Time Option Pricing Application Development
title_sort review of option pricing literature and an online real-time option pricing application development
topic computational finance
finance
option
option pricing
stock option
computational
Black Scholes
application
web
website
optionAAA.com
www.optionAAA.com
real-time
delayed
online
computer
computing
programming
php
development
software
review
literature
literature review
binomial
Monte-Carlo
url https://eprints.nottingham.ac.uk/21517/