Solving the Bond Option Pricing Mathematics Model by Means of the Radial Basis Function Method
ZHOU Lin, ZHANG Tie (School of Sciences,Northeastern University,Shenyang 110004,China)
A new numerical scheme is devised by applying the radial basic functions(RBFs) such as Hardy's multiquadric (MQ) to gain the numerical solution of the bond option pricing. Some numerical examples are given. This method possesses several advantages such as simple caculation form, flexible knot collocation and low caculation cost.