Pricing of equity swaps in uncertain financial market

•Assuming that underlying assets follow the uncertain differential equation with fixed interest rate, the pricing formulas of equity swaps are derived.•Assuming that underlying assets and interest rate changes both follow the uncertain differential equation, the pricing formulas of equity swaps are derived.•This paper uses the minimum cover estimation method to estimate the parameters of uncertain differential equation, design the pricing algorithm, and calculate the price of the stock swap contract based on actual examples. As one of the important derivatives in the over-the-counter market, the scale of equity swaps is expanding. The frequent development of equity swap business makes investors more pursue fairness when signing contracts, hedging risks, and maximizing returns. This paper provides investors with a reference for the pricing of equity swap contracts. Assuming that the stock price follows an uncertain mean-reverting process and the interest rate follows an uncertain Ornstein-Uhlenbeck process, the pricing formulas of equity swaps with a fixed (or floating) interest rate are derived, which enriches the existing financial pricing theory. In addition, this paper also designs the calculation method of the contract price and applies it in conjunction with examples.