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This document discusses using perturbation methods to approximate solutions for options with time-dependent stochastic volatility. The key equations shown decompose the option value V as a series in powers of the perturbation parameter ε, with V0 giving the unperturbed solution and subsequent terms giving corrections. It provides the governing partial differential equation for the perturbation method for both call and put options. The document directs the user to an article on pages 13-17 to find the pertur

Author

Hafiz Muhammad Nadir

Language

EN