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Main Author: LeFloc'h, Fabien
Format: Preprint
Published: 2025
Subjects:
Online Access:https://arxiv.org/abs/2507.13186
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author LeFloc'h, Fabien
author_facet LeFloc'h, Fabien
contents The COS method is a very efficient way to compute European option prices under Lévy models or affine stochastic volatility models, based on a Fourier Cosine expansion of the density, involving the characteristic function. This note shows how to compute the COS method formula with a non-uniform fast Fourier transform, thus allowing to price many options of the same maturity but different strikes at an unprecedented speed.
format Preprint
id arxiv_https___arxiv_org_abs_2507_13186
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle NUFFT for the Fast COS Method
LeFloc'h, Fabien
Computational Finance
Pricing of Securities
The COS method is a very efficient way to compute European option prices under Lévy models or affine stochastic volatility models, based on a Fourier Cosine expansion of the density, involving the characteristic function. This note shows how to compute the COS method formula with a non-uniform fast Fourier transform, thus allowing to price many options of the same maturity but different strikes at an unprecedented speed.
title NUFFT for the Fast COS Method
topic Computational Finance
Pricing of Securities
url https://arxiv.org/abs/2507.13186