Option Pricing Using Chaos Theory: A Simulation Environment

Vijayalaxmi, . and Lal, Akshat and Adiga, Chandrashekara S and Joshi, H G (2015) Option Pricing Using Chaos Theory: A Simulation Environment. In: 4th International Conference on Emerging Trends in Finance & Accounting, August 21-22, 2015.

[img] PDF
Option Pricing Using Chaos Theory A Simulation Environment _ VL_CSA.pdf - Published Version
Restricted to Registered users only

Download (1MB) | Request a copy

Abstract

This paper talks about implications of Chaos Theory in the field of Financial Mathematics. It is an enhancement in the current pricing theories to account for factors previously ignored in the practical studies. The paper concentrates more on discussing the algorithms developed. Focus is also given on simulation studies and testing using MATLAB simulation environment for various data groups. These algorithms can be can be incorporated in designing exclusive trading instruments with high efficiency and better performance, adhering to accurate price and market behaviour simulations. A detailed analysis of each method of calculation is also referred to. Conclusively, it has the potential to revolutionize the current market study scenarios and offers an empowering means to the investors

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Chaos, pricing, options, strike price, stock price, underlying price
Subjects: Engineering > MIT Manipal > Electrical and Electronics
Depositing User: MIT Library
Date Deposited: 15 Dec 2015 15:25
Last Modified: 12 Jan 2017 09:23
URI: http://eprints.manipal.edu/id/eprint/144763

Actions (login required)

View Item View Item