Structure of optimal stopping domains for American options with knock out domains

American options give us the possibility to exercise them at any moment of time up to maturity. An optimal stopping domain for American type options is a domain that, if the underlying price process enters we should exercise the option. A knock out option is a American barrier option of knock out ty...

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Date:2007
Main Author: Lundgren, R.
Format: Article
Language:English
Published: Інститут математики НАН України 2007
Online Access:https://nasplib.isofts.kiev.ua/handle/123456789/4516
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Journal Title:Digital Library of Periodicals of National Academy of Sciences of Ukraine
Cite this:Structure of optimal stopping domains for American options with knock out domains / R. Lundgren // Theory of Stochastic Processes. — 2007. — Т. 13 (29), № 4. — С. 98–129. — Бібліогр.: 22 назв.— англ.

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Digital Library of Periodicals of National Academy of Sciences of Ukraine
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author Lundgren, R.
author_facet Lundgren, R.
citation_txt Structure of optimal stopping domains for American options with knock out domains / R. Lundgren // Theory of Stochastic Processes. — 2007. — Т. 13 (29), № 4. — С. 98–129. — Бібліогр.: 22 назв.— англ.
collection DSpace DC
description American options give us the possibility to exercise them at any moment of time up to maturity. An optimal stopping domain for American type options is a domain that, if the underlying price process enters we should exercise the option. A knock out option is a American barrier option of knock out type, but with more general shape structure of the knock out domain. An algorithm for generating the optimal stopping domain for American type knock out options is constructed. Monte Carlo simulation is used to determine the structure of the optimal stopping domain. Results of the structural, and stability of studies are presented for different models of payoff functions and knock out domains.
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language English
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publishDate 2007
publisher Інститут математики НАН України
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spelling Lundgren, R.
2009-11-24T15:29:35Z
2009-11-24T15:29:35Z
2007
Structure of optimal stopping domains for American options with knock out domains / R. Lundgren // Theory of Stochastic Processes. — 2007. — Т. 13 (29), № 4. — С. 98–129. — Бібліогр.: 22 назв.— англ.
0321-3900
https://nasplib.isofts.kiev.ua/handle/123456789/4516
American options give us the possibility to exercise them at any moment of time up to maturity. An optimal stopping domain for American type options is a domain that, if the underlying price process enters we should exercise the option. A knock out option is a American barrier option of knock out type, but with more general shape structure of the knock out domain. An algorithm for generating the optimal stopping domain for American type knock out options is constructed. Monte Carlo simulation is used to determine the structure of the optimal stopping domain. Results of the structural, and stability of studies are presented for different models of payoff functions and knock out domains.
en
Інститут математики НАН України
Structure of optimal stopping domains for American options with knock out domains
Article
published earlier
spellingShingle Structure of optimal stopping domains for American options with knock out domains
Lundgren, R.
title Structure of optimal stopping domains for American options with knock out domains
title_full Structure of optimal stopping domains for American options with knock out domains
title_fullStr Structure of optimal stopping domains for American options with knock out domains
title_full_unstemmed Structure of optimal stopping domains for American options with knock out domains
title_short Structure of optimal stopping domains for American options with knock out domains
title_sort structure of optimal stopping domains for american options with knock out domains
url https://nasplib.isofts.kiev.ua/handle/123456789/4516
work_keys_str_mv AT lundgrenr structureofoptimalstoppingdomainsforamericanoptionswithknockoutdomains