What question did this study set out to answer?

This research aims to establish a semi-analytical method for accurately pricing American options under various dividend scenarios.

June 3, 2026

Snapshots of Semi-Analytical Pricing of American Options with Hybrid Dividends via Integral Equations and the GIT Method

Key Points

This research aims to establish a semi-analytical method for accurately pricing American options under various dividend scenarios.
Utilized a generalized integral transform (GIT) framework.
Incorporated both continuous and discrete cash and proportional dividends.
Applied the model within a time-inhomogeneous geometric Brownian motion (GBM) context.
The GIT framework demonstrates high accuracy in pricing American options.
Effectively accommodates complex dividend structures, enhancing pricing efficiency.
Shows potential for significant improvements in investment decision-making processes.

Abstract

Quickly apply original, key PMR-published papers with Snapshots—a short article companion that distills PMR research into compressed, digestible takeaways, so you can put the paper’s core ideas to work in your investment process—fast. This Snapshot article is based on research arguing that a semi-analytical generalized integral transform (GIT) framework can accurately and efficiently price American options with continuous, discrete cash and proportional dividends within a time-inhomogeneous geometric Brownian motion (GBM) setting.

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Cite This Study

Derived from original PMR research written by Mohamed Rochdi Keffala and Achaf Ben Abdallah using AI and an editor (Mon,) studied this question.

synapsesocial.com/papers/6a1fc509dee9eb8c0dce682f https://doi.org/https://doi.org/10.3905/snp.2026.jod.004