Analysis of the Nonlinear Option Pricing Model Under Variable Transaction Costs

Author:

Ševčovič DanielORCID,Žitňanská Magdaléna

Funder

FP7-PEOPLE-2012-ITN STRIKE

APPV

Publisher

Springer Science and Business Media LLC

Subject

Finance

Reference33 articles.

1. Amster, P., Averbuj, C. G., Mariani, M. C., & Rial, D. (2005). A Black–Scholes option pricing model with transaction costs. Journal of Mathematical Analysis and Applications, 303, 688–695.

2. Ankudinova, J., & Ehrhardt, M. (2008). On the numerical solution of nonlinear Black–Scholes equations. Computers and Mathematics with Applications, 56, 799–812.

3. Avellaneda, M., Levy, A., & Paras, A. (1995). Pricing and hedging derivative securities in markets with uncertain volatilities. Applied Mathematical Finance, 2, 73–88.

4. Averbuj, C. G. (2012). Nonlinear integral-differential evolution equation arising in option pricing when including transaction costs: A viscosity solution approach. Revista Brasileira de Economia de Empresas, 12(1), 81–90.

5. Bakstein, D., Howison, S. (2004). A non–arbitrage liquidity model with observable parameters. Working paper, http://eprints.maths.ox.ac.uk/53/

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