University of Kashan Mathematics Interdisciplinary Research 2538-3639 9 3 2024 09 01 Timeline and Wavelets Method for Pricing Cash-or-Nothing Options 315 331 114481 10.22052/mir.2024.253952.1448 EN Saeed Vahdati ‎Department of Mathematics,‎ ‎Khansar Campus‎, ‎University of Isfahan, ‎Isfahan‎, ‎I‎. ‎R‎. ‎Iran Foad Shokrollahi ‎Department of Mathematics and Statistics,‎ University of Vaasa, ‎P.O‎. ‎Box 700‎, ‎Fin-65101 Vaasa‎, ‎Finland Journal Article 2023 12 06 This study investigates the application of the Haar wavelet method as an innovative and effective approach for valuing financial derivatives‎, ‎particularly cash-or-nothing options‎. ‎Valuing derivatives is a complex task in finance‎, ‎requiring advanced numerical methods that can adapt to various models and scenarios‎. ‎Cash-or-nothing options are popular for their simplicity and cost-effectiveness in market speculation and risk hedging‎, ‎but their pricing is challenging due to several influencing factors‎. ‎The study provides a comprehensive overview of the Haar wavelet method‎, ‎demonstrating through numerical examples its precision and stability in option pricing‎. ‎Additionally‎, ‎it examines critical risk parameters‎, ‎such as delta and gamma‎, ‎essential for managing and hedging risks associated with these options. https://mir.kashanu.ac.ir/article_114481_925ffc3d27db2b34639c255b415db4bb.pdf