| Advanced Option Pricing Models details specific conditionsunder which current option pricing models fail to provideaccurate price estimates and then shows option traders how toconstruct improved models for better pricing in a wider rangeof market conditions. Model-building steps cover options pricingunder conditional or marginal distributions, using polynomialapproximations and",curve fitting,", and compensating formean reversion. The authors also develop effective prototypemodels that can be put to immediate use, with real-time examplesof the models in action. |
