Comparative Analysis Of Black-Scholes Model and Trinomial Model In Us Dollar to Rupiah for Hedging in 2008 (Garda Business)

Bandy Cipta Nur Ramadhan

Informasi Dasar

21 kali
17.25.048
658.15
Proceeding ( Electronic )
17 A

In this paper, i will analyze comparison of two option pricing models to protect our value of exchange rates when high volatility condition. It will applied when global crisis in Indonesia (2008), where the fluctuation for exchange rate between USD and IDR (USDIDR) very high (20.85%). According to economists, if we want protecting value of an asset, we can use derivative products, such as forward, future, swap, and options. According to previous research, the option market is a popular market among researchers and practitioners, because it can minimizing risk in a derivative market than previous markets such as forward market or futures market. So in accordance with the statement of economic experts, and previous researchers, to protect assets, you can use option derivative products. Black-Scholes model as the first model to successfully grabbing the public's attention, and Trinomial model as a very useful model for predicting future value for a contract, and i will be compared two model derivative option to this research. Comparison of the two models is measured using Average Mean Square Error, it can show error value of option pricing model.

Subjek

Finacial Management
 

Katalog

Comparative Analysis Of Black-Scholes Model and Trinomial Model In Us Dollar to Rupiah for Hedging in 2008 (Garda Business)
 
5p.; 434KB
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Pengarang

Bandy Cipta Nur Ramadhan
Perorangan
Riko Hendrawan
 

Penerbit

Faculty of Economics and Business, Telkom University
Bandung
2017

Koleksi

Kompetensi

 

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