Pricing European and American Installment Options

Goard, Joanna; AbaOud, Mohammed

doi:10.3390/math10193494

Cited by 2 publications

(1 citation statement)

References 20 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Additionally, lower buying power in some regions can limit customers' ability to afford CeilBrakes' products, leading to lower sales volumes. Strategic pricing initiatives, installment payment options, or exploring potential partnerships can help overcome this obstacle and improve sales performance [4].…”

Section: Business Issuesmentioning

confidence: 99%

Addressing Inconsistent Sales and Determining Continent-Specific Discounts: A Case Study of CeilBrakes Furniture Retail Company

Baghati

2023

IJITCSA

View full text Add to dashboard Cite

This paper highlights the primary business issues faced by CeilBrakes Furniture Retail Company, namely inconsistent sales across different continents. While Europe demonstrates strong sales, North America, Australia, Asia, and Africa exhibit varying levels of mediocre and low sales in terms of the quantity of products ordered. Additionally, determining appropriate discount percentages for each continent poses a challenge. To address the issue of inconsistent sales, the company aims to enhance advertising efforts, improve customer relationships, and analyze trends in continents with low sales (excluding Europe). For determining continent-specific discounts, a solution involves identifying continents with low sales and offering higher discounts accordingly. In the case of Australia, which experiences low sales, CeilBrakes should provide more significant discounts. Despite Asia and Africa already having high discounts, their sales remain low. This situation calls for considering factors beyond retail price reductions, such as cultural influences. To facilitate easier viewing and analysis, a dashboard has been developed to visualize the aforementioned issues. The dashboard enables the identification of trends and patterns, empowering the company to make informed decisions in addressing the observed problems.

show abstract

Section: Business Issuesmentioning

confidence: 99%

Addressing Inconsistent Sales and Determining Continent-Specific Discounts: A Case Study of CeilBrakes Furniture Retail Company

Baghati

2023

IJITCSA

View full text Add to dashboard Cite

show abstract

A finite element method for pricing of continuous-installment options under a Markov-modulated model: existence, uniqueness, and stability of solutions

Heidari

2023

Soft Comput

View full text Add to dashboard Cite

In this paper, we apply Markov-modulated models to value continuous-installment options of European style with partial differential equation approach. Under regime switching models and the opportunity for continuing or stopping to pay installments, the valuation problem can be formulated as coupled partial differential equations (CPDE) with free boundary features, which in many ways is similar to the free boundary problem for vanilla American options due to the possibility of early exercise. In this paper to value the continuous-installment options under the proposed model with numerical approach, we first express the truncated CPDE as a linear complementarity problem (LCP), then a finite element method is applied to solve the resulting variational inequality. Under some appropriate assumptions, we establish the stability of the method and illustrate some numerical results to examine the rate of convergence and accuracy of the proposed method for the pricing problem under regime-switching model.

show abstract

Pricing European and American Installment Options

Cited by 2 publications

References 20 publications

Addressing Inconsistent Sales and Determining Continent-Specific Discounts: A Case Study of CeilBrakes Furniture Retail Company

Addressing Inconsistent Sales and Determining Continent-Specific Discounts: A Case Study of CeilBrakes Furniture Retail Company

A finite element method for pricing of continuous-installment options under a Markov-modulated model: existence, uniqueness, and stability of solutions

Contact Info

Product

Resources

About