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Longstaff-Schwartz Method×Valorisation neutre au risque×
DomaineFinance quantitativeFinance quantitative
FamilleMachine learningRegression model
Année d'origine20011979
Auteur d'origineFrancis A. Longstaff and Eduardo S. SchwartzJohn Harrison and David Kreps
TypeValuation AlgorithmFundamental Principle
Source fondatriceLongstaff, 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 ↗
AliasLSM, Least-Squares MC, Optimal StoppingRisk-Neutral Measure, Q-Measure
Apparentées44
RésuméThe 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.
ScholarGateJeu de données
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  2. 2 Sources
  3. PUBLISHED

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ScholarGateComparer des méthodes: Longstaff-Schwartz Method · Risk-Neutral Valuation. Consulté le 2026-06-19 sur https://scholargate.app/fr/compare