Further Research In Several Types Of Numerical Solution Of Exotic Options Pricing Model

In this paper, binary numerical solution method will be used to study the problem of numerical solution look back option pricing model and the underlying asset transaction costs in the B&P joint action under the CEV model, as well as ternary tree methods will be applied and finite volume method look back option pricing model the method for finding specific parameters to make a inquiry. The main contents are as follows:The first chapter introduces the option pricing theory and the results have achieved, as well as the purpose structure and the background of this study;The second chapter describes the standard options and new option’s pricing and the results have achieved,finally,it introduces several numerical solution methods;The third chapter introduces the underlying assets have lower transaction costs and the CEV model in the B&P joint action look back option pricing model:0<S<M<∞, t<T, for the final value conditions:f(S,M, t)=M-S, boundary value conditions forMeantime applying the binary method gives parameters emulated and numerical solution of the model; followed by application of a ternary tree and the numerical solution of the option given by the finite volume method parameter emulated; finally giving an example of a binary tree analysis to verify the validity of binary solution.