Collocation method based on modified ？cubic？ B-spline ？for option pricing ？models

Sa？etak Collocation？？ ？method ？based ？on ？modified？ cubic B-spline functions ？has ？been ？developed？ ？for ？the ？valuation ？？？of European？, ？American and Barrier options of single ？asset. ？The ？new ？approach ？contains ？？discretizing ？of？ t？？emporal ？derivative？ ？using ？finite ？difference ？approximations ？and ？approximating？ the option price with the ？modified？ B-spline functions？. ？Stability of this method has been discussed and shown that it is unconditionally stable？. ？The ？efficiency ？of ？the？ ？proposed ？method ？is ？tested ？by ？different ？examples？？？.