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Zmienność lokalna (Dupire)×Wycena Crank-Nicolson×
DziedzinaFinanse ilościoweFinanse ilościowe
RodzinaRegression modelMachine learning
Rok powstania19941947
TwórcaBruno DupireJohn Crank and Phyllis Nicolson
TypEquity/FX ModelPDE Solver
Źródło pierwotneDupire, B. (1994). Pricing with a smile. Risk Magazine, 7(1), 18-20. link ↗Crank, J., & Nicolson, P. (1947). A practical method for numerical evaluation of solutions of partial differential equations of the heat-conduction type. Mathematical Proceedings of the Cambridge Philosophical Society, 43(1), 50-67. DOI ↗
Inne nazwyDeterministic Volatility Function, DVFCN Method, Implicit Finite Difference
Pokrewne43
PodsumowanieDupire'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.The Crank-Nicolson method is a widely-used implicit finite difference scheme for solving PDEs in option pricing. It provides second-order accuracy in both space and time, unconditional stability, and can efficiently price derivatives with early exercise features (American options) or complex boundary conditions.
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