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[PDF] Top 20 Consequences for option pricing of a long memory in volatility

Has 10000 "Consequences for option pricing of a long memory in volatility" found on our website. Below are the top 20 most common "Consequences for option pricing of a long memory in volatility".

Consequences for option pricing of a long memory in volatility

Consequences for option pricing of a long memory in volatility

... and long memory specifications that can be seen by comparing Figures 2 and ...the long memory term structures can and do intersect because the volatility process is not ... See full document

57

Option Pricing Applications of Quadratic Volatility Models

Option Pricing Applications of Quadratic Volatility Models

... Random coefficient autoregressive time series were in- troduced by Nicholls and Quinn [10] and some of their properties have been studied recently by Thavaneswaran [3]. RCA models exhibiting long memory ... See full document

16

Smile from the past: A general option pricing framework with multiple volatility and leverage components

Smile from the past: A general option pricing framework with multiple volatility and leverage components

... as long memory, multiple components and asymmetric effects, which turns out to be crucial in improving volatility forecast and option pricing ...multi-factor volatility structure ... See full document

31

Smile from the Past: A general option pricing framework with multiple volatility and leverage components

Smile from the Past: A general option pricing framework with multiple volatility and leverage components

... as long memory, multiple components and asymmetric effects, which turns out to be crucial in improving volatility forecast and option pricing ...multi-factors volatility ... See full document

33

An empirical model of volatility of returns and option pricing

An empirical model of volatility of returns and option pricing

... The objections raised above lead us to analyse the actual distribution of returns x and to see if any conclusion can be drawn about their analytic form. The frequencies of returns for US Bonds and some currencies are ... See full document

34

Executive Stock Option Pricing in China under Stochastic Volatility

Executive Stock Option Pricing in China under Stochastic Volatility

... state-owned shares have the dominant role compared with traded shares. The role of the book-to- market and leverage ratio can be masked by these non-tradable shares in the state-owned companies. Second, there is ... See full document

18

Numerical Solution of Pricing of European Put Option with Stochastic Volatility

Numerical Solution of Pricing of European Put Option with Stochastic Volatility

... has long been an intriguing problem in different ...an option pricing model is volatility, a measure of how much the underlying asset price is likely to vary over ...markets, volatility ... See full document

14

Military Software Black-Scholes Pricing Model: Value of Software Option and Volatility

Military Software Black-Scholes Pricing Model: Value of Software Option and Volatility

... this option pricing method can become one of the objective parameters for military software pricing so that the military has the initiative during the negotiations with software development ... See full document

6

Kou Jump Diffusion Model: An Application to the S&P 500; Nasdaq 100 and Russell 2000 Index Options

Kou Jump Diffusion Model: An Application to the S&P 500; Nasdaq 100 and Russell 2000 Index Options

... of option pricing: (a) The implied volatility daily calibrated Black–Scholes model, (b) the Cox and Ross univariate model with the volatility which is a deterministic and inverse function of ... See full document

12

Exponential Smoothing, Long Memory and Volatility Prediction

Exponential Smoothing, Long Memory and Volatility Prediction

... the pricing of financial ...stochastic volatility model for asset returns, see Engle (1995) and Shephard (2005) for a collection of key references in these ...of volatility, such as daily realized ... See full document

29

PRICING EXOTIC OPTION UNDER STOCHASTIC VOLATILITY MODEL

PRICING EXOTIC OPTION UNDER STOCHASTIC VOLATILITY MODEL

... constant volatility in the Black-Scholes model contradicts to the existence of the non-fl at implied volatility surface observed in empirical ...to option pricing under stochastic ... See full document

11

Pricing European Put Option in a Geometric Brownian Motion Stochastic Volatility Model

Pricing European Put Option in a Geometric Brownian Motion Stochastic Volatility Model

... stochastic volatility was used in pricing European put option numerically, due to the unattainable closed form solution of the ...that Option value in a GBM stochastic volatility model ... See full document

7

European Option Pricing for a Stochastic Volatility Lévy Model with Stochastic Interest Rates

European Option Pricing for a Stochastic Volatility Lévy Model with Stochastic Interest Rates

... of option pricing under stochastic interest rates has been investigated for along ...the option pricing formula based on Black-Scholes model under several stochastic interest rate processes, ... See full document

11

Pricing of a European Call Option Under a Local Volatility Interbank Offered Rate Model

Pricing of a European Call Option Under a Local Volatility Interbank Offered Rate Model

... local volatility IBOR model is found to be efficient to price the interest rate caplet for developed ...matches option prices in developing markets very well hence its use to price for developed ...the ... See full document

5

Distinguishing short and long memory volatility specifications

Distinguishing short and long memory volatility specifications

... if long or short memory is ...the long or short memory of a simulated series can be revealed ...a long memory process as a short memory mimicking process and vice ...of ... See full document

21

A Linear Regression Approach for Determining Option Pricing for Currency Rate Diffusion Model with Dependent Stochastic Volatility, Stochastic Interest Rate, and Return Processes

A Linear Regression Approach for Determining Option Pricing for Currency Rate Diffusion Model with Dependent Stochastic Volatility, Stochastic Interest Rate, and Return Processes

... process, volatility process and return process is ...call option price that has an algebraic ex- pression similar to a Black-Scholes model, which facilitates easier study, is ... See full document

17

MODELING AND SIMULATION OF GRID CONNECTED PHOTOVOLTAIC DISTRIBUTED GENERATION 
SYSTEM

MODELING AND SIMULATION OF GRID CONNECTED PHOTOVOLTAIC DISTRIBUTED GENERATION SYSTEM

... For exotic options, we have no exact knowledge about the price's concavity. In this case we have to solve these two nonlinear PDEs in (10). The finite difference method is used, at each time time we have to use an ... See full document

7

Canonical Representation Of Option Prices and Greeks with Implications for Market Timing

Canonical Representation Of Option Prices and Greeks with Implications for Market Timing

... empirical pricing kernel for call option by a signal extraction procedure for unobservable pricing ...unobservable pricing kernel but used a two stage estimation proce- dure that involves ... See full document

42

Jumps and stochastic volatility in crude oil prices and advances in average option pricing

Jumps and stochastic volatility in crude oil prices and advances in average option pricing

... our pricing methodology for arithmetic Asian options under stochastic volatility, in particular, the Heston and Bates ...the pricing of Asian options, most of them rely on one-dimensional processes ... See full document

24

Stochastic Volatility Jump Diffusion Model for Option Pricing

Stochastic Volatility Jump Diffusion Model for Option Pricing

... spot volatility, jump times, and jump sizes using S&P 500 and Nasdaq 100 index ...the volatility structure of the S&P and Nasdaq indices and indicated that models with jumps in volatility are ... See full document

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