The purpose of this chapter is to serve as a basic guide to introduce the reader to different types of valuation techniques utilized when valuing new technologies. The goal is to familiarize the reader with the differing techniques along with some of the issues in utilizing them. The chapter...

We propose a new semi-parametric model for the implied volatility surface, which incorporates machine learning algorithms. Given a starting model, a tree-boosting algorithm sequentially minimizes the residuals of observed and estimated implied volatility. To overcome the poor predicting power of...