Option Pricing of an Asset with Seasonal and Periodic Supply

dc.contributor.author	Rangita, Apaka
dc.contributor.author	Onyango, Silas N.
dc.contributor.author	Ongati, Omolo
dc.contributor.author	Nyakinda, Otula
dc.date.accessioned	2020-08-19T10:09:09Z
dc.date.available	2020-08-19T10:09:09Z
dc.date.issued	2014-12-12
dc.identifier.issn	2045-7057
dc.identifier.uri	http://ir.jooust.ac.ke:8080/xmlui/handle/123456789/8822
dc.description.abstract	In option pricing the rate of change of asset price with time can be viewed to be directly proportional to the Walrasian [6] excess demand. Scholars such as Jacques [3] and Onyango [4], have used the excess demand concept with linearised demand and supply functions to derive and solve both deterministic and stochastic logistic differential equations for stock price. The underlying assets in option pricing are unique and can be seasonal and periodic like for electricity, water and other ‘weather’ derivatives. In this paper we develop and solve both deterministic and stochastic logistic differential equations for option pricing using the excess demand concept but with a linear demand function and a seasonal and periodic supply function.	en_US
dc.language.iso	en	en_US
dc.publisher	International Journal of Multidisciplinary Sciences and Engineering	en_US
dc.subject	Supply	en_US
dc.subject	Demand	en_US
dc.subject	Equilibrium	en_US
dc.subject	Deterministic	en_US
dc.subject	Stochastic	en_US
dc.subject	Logistic	en_US
dc.subject	Differential Equations	en_US
dc.title	Option Pricing of an Asset with Seasonal and Periodic Supply	en_US
dc.type	Article	en_US