• Matanda Ephraim
• Chikodza Eriyoti
• Kwenda Farai

Contrary to the non-variable nature of most assumptions on which structural models are based, financial markets are characterized by variables that are imprecisely defined. The research incorporates such imprecise variables in the valuation of banking corporations operating under uncertain and frictional financial markets. Fluctuating financial markets are defined by variables such as interest rates and volatilities of assets that are not precisely expressed as given under structural models. By assuming that risk free rates, asset volatilities and geometric Brownian motion (BM) intensities are fuzzy numbers, the paper proposes a jump-diffusion model to estimation of the values of banking corporations. We validate the model using financial data drawn from two banks conveniently drawn from countries in Southern Africa.

structural models, imprecise variables, fluctuating financial markets, asset volatilities, fuzzy numbers, jump-diffusion model

"Fuzzy Jump-Diffusion Model for Pricing of Equity of Banking Corporations in Emerging Economies", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.10, Issue 7, page no.f200-f218, July-2023, Available :http://www.jetir.org/papers/JETIR2307526.pdf

"Fuzzy Jump-Diffusion Model for Pricing of Equity of Banking Corporations in Emerging Economies", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.10, Issue 7, page no. ppf200-f218, July-2023, Available at : http://www.jetir.org/papers/JETIR2307526.pdf