Stability analysis of option pricing models

In this thesis, we study stability analysis of two different option pricing models. These models are derived for a closed systems in which conserves cash and assets ([4],[14]). These systems consist of a single asset and homogeneous group of investors. First, equilibrium conditions of the systems are examined, then equilibrium points of these systems are obtained. At this point, we mentioned existing of equilibrium regions which include all of the equilibrium situations. We use Routh-Hurwitz Criteria in order to establish the stability theorems for each model. Also, we mention that there is a stable region for each model if the conditions of stability theorem come true. Finding stable region provide us to have