Black-Scholes Alternative

Related Link » Adaptive-Wave Alternative for the Black-Scholes Option Pricing Model
“A nonlinear wave alternative for the standard Black-Scholes option-pricing model is presented. [...] Adjustable 'weights' of the adaptive market-heat potential are estimated using either unsupervised Hebbian learning, or supervised Levenberg-Marquardt algorithm. In the case of stochastic volatility, it is itself represented by the wave function, so we come to the so-called Manakov system of two coupled NLS equations (that admits closed-form solutions), with the common adaptive market potential, which defines a bidirectional spatio-temporal associative memory.”
— ‘Vladimir G. Ivancevic, (Submitted on 10 Nov 2009)’

Works for me.

Post #1,024 Black-Scholes Alternative