2007•Journal of Anqing Teachers CollegeRequires access

Trinomial Option Pricing Model of Barrier Option in Finite Periods

WU Su-qin

Abstract

A trinomial option pricing model for finite periods is studied in this paper.One of the models with three possible states is discussed which extends the binomial model of Cox-Ross-Rubinstein.By the theory of probability,we show the formula of the trinomial option pricing model of barrier option in finite periods in a stock market.

About this research paper

What this paper is about

Why it matters

A significance statement is not available in the OpenAlex record.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Key concepts: Trinomial, Trinomial tree, Barrier option, Finite difference methods for option pricing, Valuation of options, Binomial options pricing model, Binomial (polynomial), Monte Carlo methods for option pricing