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A Parabolic Obstacle Problem Related to Executive Stock Options

Author: ZhangHaiLing
Tutor: YuWangHui
School: Suzhou University
Course: Applied Mathematics
Keywords: Executive Stock Option Parabolic obstacles Section method.
CLC: F224
Type: Master's thesis
Year: 2009
Downloads: 26
Quote: 0
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Abstract


This study a form of parabolic obstacle problem : u ( z ( ? ) ) , Where r, σ, μ, Κ, γ, l and L are constant , c and d are constants , satisfy c < lnΚ, d> lnΚ, ξ (z) is given a known function to meet ξ ∈ C ~ ∞ ([c, d]), ξ (z) <0 in [ c , d ] and wherein 0 < v < d - lnΚ . The problem comes from the best implementation strategy for executive stock options , which is characterized by : the obstacle condition Bu ≥ 0 in u ( ? ) Partial derivatives , which makes the study of this issue to bring great difficulties. Existence in the sectioning method that is the time variable ( ? ) Discrete approximation of the parabolic obstacle problem , through the approximate fine construed a priori estimate prove to understand ( ? ) , Where Q = ( c D ) x ( L , L ) .

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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