Bayesian support vector machines for economic modeling: Application to option pricing

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

An option is the right, not the obligation, to buy or sell an underlying asset at a later date by fixing the price of the asset at the present moment. European styled options can be priced using the Black-Scholes equation and are only exercised at the end of the period but American options can be exercised at any time during the period and are, therefore, more complex due to the second random process they introduce. Support vector machines and multi-layered perceptron techniques are implemented using Bayesian technique to model American options and the results are compared.

Original languageEnglish
Title of host publicationAdvanced Information and Knowledge Processing
PublisherSpringer London
Pages83-100
Number of pages18
Edition9781447150091
DOIs
Publication statusPublished - 2013

Publication series

NameAdvanced Information and Knowledge Processing
Number9781447150091
ISSN (Print)1610-3947
ISSN (Electronic)2197-8441

ASJC Scopus subject areas

  • Management Information Systems
  • Information Systems
  • Information Systems and Management
  • Artificial Intelligence

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