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In this article, I present methods to efficiently estimate the price and the probability of exercise for vanilla and exotic options in R. In addition, I compare the empirical delta between European and average rate Asian options.

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Asian and European Option Specifics–Pricing, Estimation, and Comparison Using R

In this article, I present methods to efficiently estimate the price and the probability of exercise for vanilla and exotic options. In addition, I am using these results to compare the empirical delta between European and average rate Asian options. The research is 100% reproducible.

The files of interest are;

  • 'vanilla-and-exotic-option-pricing.pdf': The rendered PDF report,
  • 'vanilla-and-exotic-option-pricing.tex': The LaTeX source document,
  • ''vanilla-and-exotic-option-pricing.Rmd': The raw article, including all R programming code.

For more information, please contact c.satzky@gmail.com.

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In this article, I present methods to efficiently estimate the price and the probability of exercise for vanilla and exotic options in R. In addition, I compare the empirical delta between European and average rate Asian options.

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