Option valuation under no-arbitrage constraints with neural networks

In this paper, we start from the no-arbitrage constraints in option pricing and develop a novel hybrid gated neural network (hGNN) based option valuation model. We adopt a multiplicative structure of hidden layers to ensure model differentiability. We also select the slope and weights of input layer...

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Bibliographic Details
Main Authors: Cao, Yi, Liu, Xiaoquan, Zhai, Jia
Format: Article
Language:English
Published: 2021
Subjects:
Online Access:https://eprints.nottingham.ac.uk/65405/