/MA473-Computational-Finance

My Computational Finance Course at IIT G

Primary LanguageMATLAB

MA473-Computational-Finance

My Computational Finance Course at IIT G

These are mostly compact and are the part of my endsem lab examination preparation. So some of the labs which are exactly same might be skipped. Go through codes of similar problems in other labs.

Instead of Backward, Forward and Crank-Nikolson method, all of them are combined using theta-method, and finally theta is substituted, theta=1/2 for Crank-Nikolson.

For Forward in time and Central in Space(FTCS), stability condition is lambda<(1/2).

The theta-method and stability analysis can be found in "Tools for Computational Finance" Book by Rüdiger Seydel and last two labs are from "Monte Carlo Methods in Financial Engineering" Book by Paul Glasserman.