Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

Barrier Option Pricing and Sensitivity Analysis Based on Facebook

Authors
Jiawen Leng1, *
1Science in computer system, University of limerick, V94 T9PX, Limerick, Ireland
*Corresponding authors. Email: 19108843@studentmail.ul.ie
Corresponding Author
Jiawen Leng
Available Online 26 March 2022.
DOI
10.2991/aebmr.k.220307.005How to use a DOI?
Keywords
Barrier option; Facebook; Black-Scholes
Abstract

This article studies the up-and-in-barrier option pricing research based on Facebook. With the economic development, more and more people are willing to invest in the stock market or financial products. Among them, barrier option is a very common barrier option. The paper first introduces the characteristics of the barrier option and why the up and in barrier option was chosen. According to the features of the up and in barrier option, Facebook was selected as the target. Afterward, the Black-Scholes pricing model is used to price the barrier option. The simulation was be used for sensitivity analysis. The article shows directly that with the increase in volatility, the price of stocks is also rising. Also, when the strike price became higher, the option price became lower. Besides, the spot price also has a positive effect on the option price.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
10.2991/aebmr.k.220307.005
ISSN
2352-5428
DOI
10.2991/aebmr.k.220307.005How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Jiawen Leng
PY  - 2022
DA  - 2022/03/26
TI  - Barrier Option Pricing and Sensitivity Analysis Based on Facebook
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 27
EP  - 31
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.005
DO  - 10.2991/aebmr.k.220307.005
ID  - Leng2022
ER  -