Location of Repository

In this discussed draft, we want to present the Partial Distribution (F.Dai, 2001) for discussing. We compare the partial distribution with lognormal and levy distribution. Though the levy distribution is better to describe the prices distribution of stock and stock indexes in a moderately large volatility range, the lognormal is better in a region of low values of volatility. We shall try to elucidate that the Partial Distribution is better than lognormal distribution in many respects. From partial distribution, we can acquire lots of interesting results, such as, describing the probability that stock price become zero if corresponding company collapses or the commodity price become zero if it lapses, expressing the average selling price of a commodity or stocks as the cost and average profits, and offering the accurate analytic model of American puts options pricing, etc. there are some related studies in appendix.partial distribution, economic analysis, commodity pricing, American puts option, accurate pricing formula

OAI identifier:

Provided by:
Research Papers in Economics

Downloaded from
http://128.118.178.162/eps/em/papers/0403/0403008.pdf

- (1992). A Simple and Numerically Efficient Valuation Method for American Puts Using a Modified Geske-Johnson Approach.
- (2001). Long-time fluctuations in a dynamical model of stock market indices,
- (2000). Looking Forward to Pricing Options from Binomial Trees, working paper,
- (2001). No.770, P.O.Box 1001, Zhengzhou Henan, 450002, China E-mail: fengdai@public2.zz.ha.cn; fengdai@126.com ———————————————————————— 1) Chinese
- (1997). On the range of options prices.
- (2002). Option Pricing from Path Integral for Non-Gaussian Fluctuations.
- (2003). partial distribution, Chinese stock market, stock index and price, fitness analysis, fiducial test 3) Chinese
- PD-the partial distribution, commodity price, optimal pricing 4
- (1991). The Accelerated Binomial Option Pricing Model,
- the partial distribution, pricing model, logical price, the Security Index 2