Logo image
Moment-matching approximations for Asian options
期刊文章   同儕審查

Moment-matching approximations for Asian options

Chien-Ling Lo, Kenneth J. PalmerMin-Teh Yu
Journal of Derivatives, 卷.21(4), 頁碼.103-122
2014

摘要

Finance Economics and Econometrics
This study provides a generalized framework under which all types of Asian options can be priced: fixed and floating strike, forward starting, and in progress. We not only extend the previous studies to our framework, but also propose a new and theoretically supported closed-form approximation for the option prices. We utilize the moment-matching approach, providing a tractable, flexible, and efficient iterative method to calculate the moments. This study also suggests that the use of a Taylor expansion is unnecessary and exhibits the considerable improvement achieved by avoiding truncation errors.

相關連結

指標

1 檢視次數

詳細資料

Logo image