Filar, Jerzy; Kang, Boda; Korolkiewicz, Malgorzata - Finance Discipline Group, Business School - 2008
also derive a binomial approximation, a finite difference method and a Monte Carlo simulation to numerically solve our …-sensitive asset price
and temperature. For the continuous-time model we also derive a bino-
mial approximation, a finite difference … derivatives, diffusion, bino-
mial approximation, numerical methods, time series, actuarial value.
1 Introduction
Weather …