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Research in Option Pricing

karafrylee

karafrylee

Joined
3/3/11
Messages
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What kind of research is of interest to the quant community regarding option pricing? Is Black Scholes, binomial and Monte Carlo the three most popular, dominant and widely used models? I'm just curious about how often these models are actually used in the real world.

Thanks.
 
I think you'll find Stochastic Volatility / Local Volatility blends are very common in the pricing of exotic options.
 
As for research, think about the models which need developing. For example multi-asset options pricing using the dependence structures. They are not that widely used but there is more to research than in standard options.
 
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