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Longstaff-Schwartzi meetod×Local Volatility (Dupire)×
ValdkondKvantitatiivne rahandusKvantitatiivne rahandus
PerekondMachine learningRegression model
Tekkeaasta20011994
LoojaFrancis A. Longstaff and Eduardo S. SchwartzBruno Dupire
TüüpValuation AlgorithmEquity/FX Model
AlgallikasLongstaff, F. A., & Schwartz, E. S. (2001). Valuing American options by simulation: A simple least-squares approach. Review of Financial Studies, 14(1), 113-147. DOI ↗Dupire, B. (1994). Pricing with a smile. Risk Magazine, 7(1), 18-20. link ↗
RööpnimetusedLSM, Least-Squares MC, Optimal StoppingDeterministic Volatility Function, DVF
Seotud44
KokkuvõteThe Longstaff-Schwartz method (2001) is a Monte Carlo algorithm for pricing American options and Bermudan swaptions by approximating the optimal exercise boundary via least-squares regression. It has become the industry standard for pricing path-dependent derivatives where analytical solutions do not exist.Dupire's local volatility model (1994) is a deterministic framework that extracts a term and strike-dependent volatility function from market option prices. Unlike constant volatility, local volatility perfectly fits the observed implied volatility smile and is implemented via finite difference methods for European and American option pricing.
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ScholarGateVõrdle meetodeid: Longstaff-Schwartz Method · Local Volatility (Dupire). Loetud 2026-06-18 aadressilt https://scholargate.app/et/compare