Subject Code & Title : MATLAB Compute Barrier Option Prices With Finite Difference Method
Assessment Type : Assignment
1 Background :
Let us consider a Call option.
Recall that the buyer of a call option has the right, but not the obligation, to buy stock at time T for the exercise price K (the terminology “strike price K” is also used with the same meaning of “exercise price K”). Assume the stock price S paying a continuous dividend yield q follows the process below:
MATLAB Compute Barrier Option Prices With Finite Difference Method Assignment – UK.