Nonstochastic model-based finance engineering

Toshihiro Kaino*, Kaoru Hirota

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

1 Citation (Scopus)

Abstract

Most of the models in the field of finance engineering are proposed based on the stochastic theory, e.g., the well-known option pricing model proposed by Black and Scholes is premised on following log-normal distribution by the underlying price. In the former stochastic theory, it is also a fact that the prediction sometime does not hit in the actual problem because it assumes a known probability distribution. Then, we propose research and development of the new corporate evaluation model and option pricing model based on fuzzy measures, which deal with the ambiguous subjectivity evaluation of man in the real world well. Especially, this system will support venture, small and medium companies.

Original languageEnglish
Title of host publicationPerception-based Data Mining and Decision Making in Economics and Finance
EditorsIldar Batyrshin, Leonid Sheremetov, Janusz Kacprzyk, Lotfi Zadeh, Ildar Batyrshin, Leonid Sheremetov
Pages303-330
Number of pages28
DOIs
Publication statusPublished - 2007
Externally publishedYes

Publication series

NameStudies in Computational Intelligence
Volume36
ISSN (Print)1860-949X

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