A HODIE finite difference scheme for pricing American options

Z Cen, W Chen - Advances in Difference Equations, 2019‏ - Springer
In this paper, we introduce a new numerical method for pricing American-style options,
which has long been considered as a very challenging problem in financial engineering …

A stable and convergent finite difference method for fractional Black–Scholes model of American put option pricing

R Kalantari, S Shahmorad - Computational Economics, 2019‏ - Springer
We introduce the mathematical modeling of American put option under the fractional Black–
Scholes model, which leads to a free boundary problem. Then the free boundary (optimal …

Numerical solution of fractional Black‐Scholes model of American put option pricing via a nonstandard finite difference method: Stability and convergent analysis

S Shahmorad, R Kalantari… - … Methods in the Applied …, 2021‏ - Wiley Online Library
In this paper, a free boundary fractional Black‐Scholes (FBS) model of American put option
pricing is investigated. To convert the free boundary FBS model to a model with known …

[HTML][HTML] Efficiency of Some Predictor–Corrector Methods with Fourth-Order Compact Scheme for a System of Free Boundary Options

C Nwankwo, W Dai - Axioms, 2023‏ - mdpi.com
The trade-off between numerical accuracy and computational cost is always an important
factor to consider when pricing options numerically, due to the inherent irregularity and …

An efficient computational algorithm for pricing European, barrier and American options

S Abdi-Mazraeh, A Khani - Computational and Applied Mathematics, 2018‏ - Springer
In this work, we use the spectral collocation technique for spatial derivatives and predictor–
corrector method for time integration to solve the Black–Scholes (B–S) equation. If the …

Robust numerical algorithm to the European option with illiquid markets

D Ahmadian, OF Rouz, K Ivaz… - Applied Mathematics and …, 2020‏ - Elsevier
In this paper, we consider illiquid European call option which is arisen in nonlinear Black–
Scholes equation. In this respect, we apply the Newton's method to linearize it. Based on the …