...Maria Vivas-Redondo; María Coronado-Vaca; Esther Vaquero-Lafuente This work explores the potential of different machine learning (ML) algorithms in the valuation of American options (Aos), contrasting them with the Longstaff–Schwartz (L–S) model. To carry out this research, the algorithms K-Nearest...

...Hail Jung; Daejin Kim We study the effectiveness of textual information in predicting the returns of crude oil futures and understanding the behavior of market participants. Using a machine learning method to extract oil market sentiment from news articles, we find that the computed sentiment...

... is to calculate the probability that a dependent variable is equal to 1 or belongs to a specific class, given independent variable: P ( y = 1 | X ) = e B ⋅ X 1 + e B ⋅ X . Support vector machine, one of the popular machine-learning methods, aims to scrutinize...