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Forecasting Real Option Price Model by Means of Evolutionary and Genetic Algorithms

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Advances in Design, Simulation and Manufacturing (DSMIE 2019)

Part of the book series: Lecture Notes in Mechanical Engineering ((LNME))

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Abstract

Research goals and objective: to predict real option prices using evolutionary and genetic algorithms which affect the accuracy of price forecasting. The object of research: real option price model. The subject of research: forecasting evolutionary and genetic algorithms for real option price model. Research methods are genetic algorithm, evolutionary algorithm, statistical technique. Results of the research: in options trading one of the main tasks is to determine the fair price option, using which we can estimate what options are undervalued, and which ones are overvalued at the moment. The decision on the purchase or sale of a particular option is made according to these algorithms. In this paper we apply genetic and evolutionary algorithms in the areas of financial instruments in order to create software intended for analysis and forecast of real price option.

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Authors and Affiliations

  1. Kherson State University, 27 Universitetska St., Kherson, 73000, Ukraine

    Mykyta Zubrii, Anastasia Mazur & Vitaliy Kobets

Authors
  1. Mykyta Zubrii
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  2. Anastasia Mazur
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  3. Vitaliy Kobets
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Corresponding author

Correspondence to Vitaliy Kobets .

Editor information

Editors and Affiliations

  1. Department of Manufacturing Engineering, Machines and Tools, Sumy State University, Sumy, Ukraine

    Vitalii Ivanov

  2. Department of Mechanical and Energy Engineering, Southern University of Science and Technology, Shenzhen, Guangdong, China

    Yiming Rong

  3. Department of Manufacturing and Production Engineering, Poznan University of Technology, Poznan, Poland

    Justyna Trojanowska

  4. Leibniz Institute for Agricultural Engineering and Bioeconomy, Potsdam, Brandenburg, Germany

    Joachim Venus

  5. Department of Processes and Equipment of Chemical and Petroleum-Refineries, Sumy State University, Sumy, Ukraine

    Oleksandr Liaposhchenko

  6. Faculty of Manufacturing Technologies with a seat in Presov, Technical University of Kosice, Prešov, Slovakia

    Jozef Zajac

  7. Department of General Mechanics and Machine Dynamics, Sumy State University, Sumy, Ukraine

    Ivan Pavlenko

  8. Faculty of Mechanical Engineering, University of West Bohemia, Pilsen, Czech Republic

    Milan Edl

  9. Department of Information and Communication Traffic, University of Zagreb, Zagreb, Croatia

    Dragan Perakovic

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Zubrii, M., Mazur, A., Kobets, V. (2019). Forecasting Real Option Price Model by Means of Evolutionary and Genetic Algorithms. In: Ivanov, V., et al. Advances in Design, Simulation and Manufacturing. DSMIE 2019. Lecture Notes in Mechanical Engineering. Springer, Cham. https://doi.org/10.1007/978-3-319-93587-4_23

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  • DOI: https://doi.org/10.1007/978-3-319-93587-4_23

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-93586-7

  • Online ISBN: 978-3-319-93587-4

  • eBook Packages: EngineeringEngineering (R0)

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