Volatile assets. American option valuation is usually based on risk-neutral valuation model,
Cox et al. use numerical programs such as binomial option pricing model. [J.C. Cox, Ross, USA,
Author Rubinstein, Option Pricing, Simplified Method, Journal of Financial Economics 7 (1979) 229-263]. Key input
This is an unobservable parameter in the multi-period binomial model. Because it's hard
In order to provide an accurate estimate of volatility, in this paper, we use possibility to allocate uncertainty models.
About fluctuations. Possibility distribution is the most popular mathematical tool to establish model uncertainty.