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Variance reduction techniques for basket option

  • Beihang University

科研成果: 书/报告/会议事项章节会议稿件同行评审

摘要

This paper prices the basket option by Monte Carlo simulation. With the comparison of the methods used as variance reduction techniques, to find the optimal way for reducing variance for basket option.The methods include antithetic variates, control variates,importance sampling,stratified sampling,moment matching, Latin hypercube sampling and combined methods. Numerical results indicate that an appropriate combination of importance sampling and stratified sampling can obtain the largest variance reductions when estimating the basket option.

源语言英语
主期刊名2010 International Conference on Management and Service Science, MASS 2010
DOI
出版状态已出版 - 2010
活动2010 International Conference on Management and Service Science, MASS 2010 - Wuhan, 中国
期限: 24 8月 201026 8月 2010

出版系列

姓名2010 International Conference on Management and Service Science, MASS 2010

会议

会议2010 International Conference on Management and Service Science, MASS 2010
国家/地区中国
Wuhan
时期24/08/1026/08/10

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