2001 | OriginalPaper | Chapter
Volume Visualization of Payoff Regions for Derivatives Risk Management
Authors : Tan Toh Fei, Edmond Cyril Prakash
Published in: Volume Graphics 2001
Publisher: Springer Vienna
Included in: Professional Book Archive
Activate our intelligent search to find suitable subject content or patents.
Select sections of text to find matching patents with Artificial Intelligence. powered by
Select sections of text to find additional relevant content using AI-assisted search. powered by
Volume visualization of derivatives helps us discover risks, which hitherto have been elusive with traditional surface plots. In this paper, we would like to address the volatility visualization issue, which is one of the critical components in Option pricing, by incorporating volume visualization for better risk management. By enabling the visualization of volatility changes in risk profiling, combining with another two Option’s value determinants (i.e. the underlying asset spot price and days to maturity), a much better understanding about the risk involved in a portfolio can be achieved, particularly when the fluctuation of the asset is highly uncertain.