This article analyses the advantages and disadvantages of the different patent systems that coexist in Europe and examines the recently launched proposal for a European Council Regulation on the Community patent in light of the shortcoming of the existing systems. The European Commission has sought the coexistent of the Community, European and national patent systems. This option does not elimi...

in this paper, the pricing of a european call option on the underlying asset is performed by using a monte carlo method, one of the powerful simulation methods, where the price development of the asset is simulated and value of the claim is computed in terms of an expected value. the proposed approach, applied in monte carlo simulation, is based on the black-scholes equation which generally def...

The Black-Scholes equations have been increasingly popular over the last three decades since they provide more practical information for optional behaviours. Therefore, effective methods needed to analyze these models. This study will focus mainly on investigating behavior of equation European put option pricing model. To achieve this, numerical solutions model are produced by combined methods....

This paper will derive the Black-Scholes pricing model of a European option by calculating the expected value of the option. We will assume that the stock price is log-normally distributed and that the universe is riskneutral. Then, using Ito’s Lemma, we will justify the use of the risk-neutral rate in these initial calculations. Finally, we will prove put-call parity in order to price European...

We consider a financial market with liquidity cost as in Çetin, Jarrow and Protter [3] where the supply function S(s, ν) depends on a parameter ε ≥ 0 with S(s, ν) = s corresponding to the perfect liquid situation. Using the PDE characterization of Çetin, Soner and Touzi [6] of the super-hedging cost of an option written on such a stock, we provide a Taylor expansion of the super-hedging cost in...

It is well known that as the time interval between two consecutive observations shrinks to zero, a properly constructed GARCH model will weakly converge to a bivariate diffusion. Naturally the European option price under the GARCH model will also converge to its bivariate diffusion counterpart. This paper investigates the convergence speed of the GARCH option price. We show that the European op...