Fuzzy Option Pricing And Simulation Analysis Of Optiongs

From stock options in the market place within the commencement oftrading, options market is growing rapidly. Now, not only within the worldhave options trading exchange, and financial institutions also have a lotof options OTC. This inevitably makes option pricing issue has become ahot topic. Based on the Black-Scholes stochastic differential model，option price theory has been significant development and improvement.This study includes：fuzzy logic is used to option pricing model；the characteristics of barrier options；Fuzzy logic is used to introducepricing European option and barrier options, and proved by the algorithm.The main results of this paper are as follows:the paper uses fuzzy logic and probability methods of combiningbarrier option pricing method gives reasonable results, demonstrated thatthe fuzzy logic and probabilistic methods combined method is applied tothe pricing of barrier options feasibility.Given a set of specific parameters, the fuzzy price range containsthe option price which are calculated by the black-scholes formula methodand the Monte Carlo simulation method. The results illustrate the fuzzypricing is reasonable and effective. Numerical methods prove fuzzy logicand probability theory combining pricing reasonable.