Two New Strategies for Pricing Freight Options by Means of a Valuation PDE and by Functional Bounds
Freight derivative prices have been modeled assuming that the spot freight follows a particular stochastic process in order to manage them, like freight futures, forwards and options. However, an explicit formula for pricing freight options is not known, not even for simple spot freight processes. T...
Main Authors: | , , |
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Format: | Article |
Language: | English |
Published: |
MDPI AG
2020-04-01
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Series: | Mathematics |
Subjects: | |
Online Access: | https://www.mdpi.com/2227-7390/8/4/620 |