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Brownian excursions an Parisian barrier options: a note

2002/02/28 by Michael Schröder, Schröder, Michael
Economics, Econometrics and Finance · Social Sciences · #33C15 #44A10 #60G46 #60H60 #Classical Analysis and ODEs (math.CA) #FOS: Economics and business #FOS: Mathematics #Financial Risk and Volatility Modeling #Insurance, Mortality, Demography, Risk Management #Pricing of Securities (q-fin.PR) #Probability (math.PR) #Stochastic processes and financial applications

paper · pdf · doi:10.48550/arxiv.math/0202299

openalex publication_date 2002/02/28 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

This note re-addresses the Paris barrier options proposed by Yor and collaborators and their valuation using the Laplace transform approach. The notion of Paris barrier options, based on excursion theory and using the Brownian meander, is extended such that their valuation is now possible at any point during their lifespan. The pertinent Laplace transforms are modified when necessary.

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