Economics, Econometrics and Finance
8 years ago

New pricing model revolutionizes options trading with stochastic interest rates!

Gongcheng shuxue xuebao
The Multi-dimensional Black-Scholes Pricing Model Under Stochastic Interest Rate
Xue Hong

Paper Summary

The article discusses a pricing model for financial options using complex math methods. It looks at how interest rates change over time and how that affects the value of options. The researchers found a formula to price European and exchange options in this model.

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