Reduce the risks of transactions by using the Heston model and application of FFT in this model.

Option-pricing is one of the important issues in thefield of financial mathematics .in this paper the objective is tominimize the risk position as a method of risk coverage inincomplete markets, and Finally, the application of this methodto determine the pricing in the Heston model. Heston model isone of the famous models in pricing financial derivatives.in thismodel unlike the model of black –Scholes, the stock price isnormally distributed, but rather than with the maturity date andprice agreement. In this paper, we first introduce the Hestonmodel and then we speak about European option pricingmethod bye style-(FFT).

کلیدواژه ها:

Heston model ، risk minimization ، The Fourier Transform