Option Pricing under Risk-Minimization Criterion in an Incomplete Market with the Finite Difference Method

<table class="table-group" id="tab2"><tr><td><table class="table"><tr><td class="thead-hr" colspan="2"><hr/></td></tr><tr class="thead"><td align="left">Price</td><td align="center"><span style="width: 7.5500002px;"><svg height="11.175" id="M152" style="vertical-align:-0.0pt" version="1.1" viewbox="0 0 7.5500002 11.175" width="7.5500002" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink">
<g transform="matrix(.017,-0,0,-.017,.062,11.113)"><path d="M414 650l-6 -28q-63 -4 -78.5 -17.5t-27.5 -71.5l-77 -416q-11 -58 0.5 -71.5t77.5 -17.5l-5 -28h-275l8 28q63 4 79.5 18.5t27.5 70.5l80 416q11 57 -2 71t-81 18l6 28h273z" id="x1D43C"></path></g>
</svg></span></td></tr><tr><td class="thead-hr" colspan="2"><hr/></td></tr><tr><td align="left">8.7858</td><td align="center">10</td></tr><tr><td align="left">9.3014</td><td align="center">20</td></tr><tr><td align="left">9.6929</td><td align="center">30</td></tr><tr><td align="left">9.7006</td><td align="center">40</td></tr><tr class="table-tr"><td colspan="2"><hr class="tbody-hr"/></td></tr></table></td></tr></table>

Mathematical Problems in Engineering

tab2

Table 2

Table 2: Option Pricing under Risk-Minimization Criterion in an Incomplete Market with the Finite Difference Method 