A preconditioned iterative method for a multi-state time-fractional linear complementary problem in option pricing

HIGHLIGHTS

  • who: Xu Chen and colleagues from the School of Economics, Guangdong University of Technology, Guangzhou, China have published the research work: A Preconditioned Iterative Method for a Multi-State Time-Fractional Linear Complementary Problem in Option Pricing, in the Journal: (JOURNAL)
  • what: Numerical experiments are presented to demonstrate the validity of the proposed nonlinear scheme and the efficiency of the proposed preconditioned policy-Krylov subspace method. The Black-Scholes model is the most famous model for option pricing problems and has been widely used; however, this model has suffered many shortcomings because it is based . . .

     

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