Investigating the Cloud Computing Business Framework (CCBF ...

Appendix: An example in Black Scholes Model (BSM)
%----------- Enter input Parameters -----------------------
S=100; %Spot price
K=100; %Strike
UB=115; %upper boundary
r=0.15; %risk free rate
T=.5; %maturity
sigma=0.2; %volatility
D=0.05; %dividend yield
assetsteps=150; %Explicit scheme time steps
%----------------------------------------------------
dt=1/(sigma*assetsteps)^2;
timesteps=ceil(T/dt)+1;
Su=UB;
ds=Su/assetsteps;
dt=T/timesteps;
for k=1:timesteps,
V(2:assetsteps,k+1)=Ai.*V(1:assetsteps-
1,k)+(1+Bi).*V(2:assetsteps,k)+Ci.*V(3:assetsteps
+1,k);
%Apply lower boundary condition
V(1,k+1)=0;
%apply upper boundary condition
V(assetsteps+1,k+1)=0;
end
V2=fliplr(V);
OptionPriceVec=V2(:,1);
option_price=interp1(Svec,OptionPriceVec,S)
V=zeros(assetsteps+1,timesteps+1);
Svec=0:ds:Su;
Svec=Svec';
V(:,1)=max((Svec-K).*(Svec