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Option Market Making via Reinforcement Learning

Option Market Making via Reinforcement Learning ArXiv ID: 2307.01814 “View on arXiv” Authors: Unknown Abstract Market making of options with different maturities and strikes is a challenging problem due to its highly dimensional nature. In this paper, we propose a novel approach that combines a stochastic policy and reinforcement learning-inspired techniques to determine the optimal policy for posting bid-ask spreads for an options market maker who trades options with different maturities and strikes. ...

July 4, 2023 · 1 min · Research Team