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Record W2292262371

Pricing By Fourier Transform: An Overview

2010· article· en· W2292262371 on OpenAlexaff
Michèle Breton, Chedly Baraket

Bibliographic record

VenueLes Cahiers du GERAD · 2010
Typearticle
Languageen
FieldEconomics, Econometrics and Finance
TopicStochastic processes and financial applications
Canadian institutionsHEC Montréal
Fundersnot available
KeywordsFourier transformMathematicsMathematical analysis
DOInot available

Abstract

fetched live from OpenAlex

This paper reviews the use of Fourier transform methods in the pricing of contingent claims. This is a very promosing topic in finance, given the scarcity of closed-form solutions for derivative prices. It is shown that solving for the Fourier Transform is much easier than solving for the price, especially so under complex probability models, such as affine jump diffusions. In fact, explicit solutions for the Fourier transform are guaranteed for many types of contingent claims. As a consequence, the only remaining numerical issue in that case is the inversion of the Fourier transform. Resume Dans ce papier nous passons en revue la methode de transformee de Fourier tels qu’elle est utilisee pour l’evaluation des biens contingents. Cette voie de recherche est encore prometteuse etant donnee la rarete des formes explicites pour les prix de certains produits derives. En fait, pour les modeles probabilistes riches comme les processus affines avec sauts, il est plus facile de resoudre pour la transformee de Fourier du prix que le prix lui meme. On constate a cet effet que plusieurs biens contingents permettent d’avoir la transformee de Fourier sous une forme explicite et pour trouver le prix, il suffit de l’inverser, tres souvent numeriquement. Les Cahiers du GERAD G–2010–72 1

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.000
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: Theoretical or conceptual
GenreCandidate signal: Empirical · Consensus signal: none
Teacher disagreement score0.825
Threshold uncertainty score0.607

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0000.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0000.000
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.021
GPT teacher head0.227
Teacher spread0.206 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2010
Admission routes1
Has abstractyes

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