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3D Tensor-based Deep Learning Models for Predicting Option Price

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arxiv 2106.02916 v2 pith:2SF7FAUE submitted 2021-06-05 q-fin.CP

3D Tensor-based Deep Learning Models for Predicting Option Price

classification q-fin.CP
keywords optiondatadeeplearningmodelsarticlechannelschinese
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Option pricing is a significant problem for option risk management and trading. In this article, we utilize a framework to present financial data from different sources. The data is processed and represented in a form of 2D tensors in three channels. Furthermore, we propose two deep learning models that can deal with 3D tensor data. Experiments performed on the Chinese market option dataset prove the practicability of the proposed strategies over commonly used ways, including B-S model and vector-based LSTM.

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