Fuzzy Optimization of Option Pricing Model and Its Application in Land Expropriation
Option pricing is irreversible, fuzzy, and flexible. The fuzzy measure which is used for real option pricing is a useful supplement to the traditional real option pricing method. Based on the review of the concepts of the mean and variance of trapezoidal fuzzy number and the combination with the Car...
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| Format: | Article |
| Language: | English |
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Wiley
2014-01-01
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| Series: | Journal of Applied Mathematics |
| Online Access: | http://dx.doi.org/10.1155/2014/635898 |
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| author | Aimin Heng Qian Chen Yingshuang Tan |
| author_facet | Aimin Heng Qian Chen Yingshuang Tan |
| author_sort | Aimin Heng |
| collection | DOAJ |
| description | Option pricing is irreversible, fuzzy, and flexible. The fuzzy measure which is used for real option pricing is a useful supplement to the traditional real option pricing method. Based on the review of the concepts of the mean and variance of trapezoidal fuzzy number and the combination with the Carlsson-Fuller model, the trapezoidal fuzzy variable can be used to represent the current price of land expropriation and the sale price of land on the option day. Fuzzy Black-Scholes option pricing model can be constructed under fuzzy environment and problems also can be solved and discussed through numerical examples. |
| format | Article |
| id | doaj-art-0fa16b5d93734e3297dfe55f08ae8775 |
| institution | Kabale University |
| issn | 1110-757X 1687-0042 |
| language | English |
| publishDate | 2014-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Journal of Applied Mathematics |
| spelling | doaj-art-0fa16b5d93734e3297dfe55f08ae87752025-02-03T05:54:40ZengWileyJournal of Applied Mathematics1110-757X1687-00422014-01-01201410.1155/2014/635898635898Fuzzy Optimization of Option Pricing Model and Its Application in Land ExpropriationAimin Heng0Qian Chen1Yingshuang Tan2College of Economics and Business Administration, Chongqing University, Chongqing 400044, ChinaCollege of Economics and Business Administration, Chongqing University, Chongqing 400044, ChinaCollege of Economics and Business Administration, Chongqing University, Chongqing 400044, ChinaOption pricing is irreversible, fuzzy, and flexible. The fuzzy measure which is used for real option pricing is a useful supplement to the traditional real option pricing method. Based on the review of the concepts of the mean and variance of trapezoidal fuzzy number and the combination with the Carlsson-Fuller model, the trapezoidal fuzzy variable can be used to represent the current price of land expropriation and the sale price of land on the option day. Fuzzy Black-Scholes option pricing model can be constructed under fuzzy environment and problems also can be solved and discussed through numerical examples.http://dx.doi.org/10.1155/2014/635898 |
| spellingShingle | Aimin Heng Qian Chen Yingshuang Tan Fuzzy Optimization of Option Pricing Model and Its Application in Land Expropriation Journal of Applied Mathematics |
| title | Fuzzy Optimization of Option Pricing Model and Its Application in Land Expropriation |
| title_full | Fuzzy Optimization of Option Pricing Model and Its Application in Land Expropriation |
| title_fullStr | Fuzzy Optimization of Option Pricing Model and Its Application in Land Expropriation |
| title_full_unstemmed | Fuzzy Optimization of Option Pricing Model and Its Application in Land Expropriation |
| title_short | Fuzzy Optimization of Option Pricing Model and Its Application in Land Expropriation |
| title_sort | fuzzy optimization of option pricing model and its application in land expropriation |
| url | http://dx.doi.org/10.1155/2014/635898 |
| work_keys_str_mv | AT aiminheng fuzzyoptimizationofoptionpricingmodelanditsapplicationinlandexpropriation AT qianchen fuzzyoptimizationofoptionpricingmodelanditsapplicationinlandexpropriation AT yingshuangtan fuzzyoptimizationofoptionpricingmodelanditsapplicationinlandexpropriation |