A new variable shaped radial basis function approach for solving European option pricing model

In this paper, a new radial basis function (RBF) approach is developed for solving European option pricing model. Without any simplifications, a simple discretization pattern directly leads to a system Ax = b, moreover, employing a new variable shape parameter (VSP) strategy named binary shape parameter (BSP) strategy leads to more accurat results rather than constant shape parameter (CSP) strategy where they are compared with exact solution for European put option model.