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Longstaff-Schwartzin menetelmä×Riskineutraali arvostus×
TieteenalaKvantitatiivinen rahoitusKvantitatiivinen rahoitus
MenetelmäperheMachine learningRegression model
Syntyvuosi20011979
KehittäjäFrancis A. Longstaff and Eduardo S. SchwartzJohn Harrison and David Kreps
TyyppiValuation AlgorithmFundamental Principle
AlkuperäislähdeLongstaff, 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 ↗Harrison, J. M., & Kreps, D. M. (1979). Martingales and arbitrage in multiperiod securities markets. Journal of Economic Theory, 20(3), 381-408. DOI ↗
RinnakkaisnimetLSM, Least-Squares MC, Optimal StoppingRisk-Neutral Measure, Q-Measure
Liittyvät44
TiivistelmäThe 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.Risk-neutral valuation (1979) is the fundamental principle that derivative prices equal the expected payoff discounted at the risk-free rate, computed under a risk-neutral probability measure (Q-measure). This principle, formalized by Harrison and Kreps, eliminates the need to estimate risk premia and is the foundation of modern derivatives pricing.
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ScholarGateVertaile menetelmiä: Longstaff-Schwartz Method · Risk-Neutral Valuation. Haettu 2026-06-19 osoitteesta https://scholargate.app/fi/compare