approximate price
4.It constructes a trinomial method to approximate the CEV process and use it to price lookback options.
6.This paper examines the pricing of barrier options when the underlying asset follows the constant elasticity of variance (CEV) process. We construct a trinomial method to approximate the CEV process and use it to price barrier options, and demonstrate the accuracy of our approach for different parameter values of the CEV process.
7.Using the approach of partial differential equation and working in the framework of Black-Scholes,we find the formula to price fixed deposit in a simplified case in which we approximate the American-style option by Bermudan option.
