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Pricing foreign exchange options : incorporating purchasing power parity / David W.K. Yeung, Michael Tow Cheung.

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Format:
Book
Author/Creator:
Yeung, David.
Contributor:
Cheung, Michael Tow.
Language:
English
Subjects (All):
Foreign exchange--Mathematical models.
Foreign exchange.
Options (Finance)--Prices--Mathematical models.
Options (Finance).
Physical Description:
1 online resource (105 p.)
Edition:
2nd ed.
Place of Publication:
Hong Kong : Hong Kong University Press, 1998.
Language Note:
English
Summary:
This book develops a new and interesting approach to the valuation of foreign exchange options. The authors synthesise international monetary theory with the Samuelson-Black-Scholes insight that assets prices follow diffusion processes, and obtain a system of stochastic differential equations to model exchange rate dynamics under the influence of purchasing power parity.
Contents:
Ch. 1. Preamble
Ch. 2. Definitions and Terminology
Ch. 3. Technical Glossary
Ch. 4. Stochastic Assumptions and Option Pricing
Ch. 5. The Black-Scholes Options Theory
Ch. 6. Geometric Brownian Motion, "Almost Certain Ruin", and Asset Markets Equilibrium in Options Pricing
Ch. 7. Non Random Walk Effects and a New Stochastic Specification
Ch. 8. Pricing Foreign Exchange Options Incorporating Purchasing Power Parity
Ch. 9. Conclusions.
Notes:
Description based upon print version of record.
Description based on print version record.
Includes bibliographical references and index.
ISBN:
1-282-70387-0
9786612703874
988-220-253-5
OCLC:
651026496

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